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What Is The Eligibility For Joint Personal Loans?

Published on Oct 15, 2023Updated on Nov 3, 2023

What Is The Eligibility For Joint Personal Loans?

Personal loans have emerged as a versatile financial solution for various financial needs. Lenders also allow two or more individuals, mostly couples or family members, to collaborate in securing a personal loan for various purposes. This type of personal loan can be particularly advantageous for couples, family members, or close friends who wish to combine their financial strengths to achieve common goals. 

What Is A Personal Loan With Joint Application?

A personal loan with a joint application refers to a financial arrangement in which two or more individuals, typically spouses, family members, or close friends, apply for a loan together from a financial institution. This joint loan allows all the applicants to combine their creditworthiness, income, and financial resources to increase their chances of qualifying for a larger loan amount or securing a more favorable interest rate.

Features Of Personal Loan Joint Application

Here are the features of a personal loan applied for by co-applicants:

1. Shared Responsibility:

In personal loans with co-applicants, all co-applicants are equally responsible for repayment. These joint loans ensure that each individual's creditworthiness and commitment are considered, potentially leading to better terms and approval chances.

2. Higher Loan Amount:

By combining the incomes and credit scores of the co-applicants, personal loans often offer access to larger loan amounts than individual loans. This can be beneficial for significant expenses such as home renovations, weddings, or medical emergencies.

3. Interest Rates:

Personal loan co-applicants may benefit from more favorable interest rates compared to individual borrowers. Lenders often perceive joint borrowers as less risky, which can translate into lower interest charges*.

4. Flexible Tenure:

Personal loan joint applications offer flexibility in tenure of up to 60 months. Co-applicants can mutually decide how to distribute the loan repayment, making it convenient for both parties.

5. Loan Tenure:

The loan tenure for such loans is typically longer, allowing borrowers to manage repayments comfortably over an extended period.

Personal Loan Joint Application Eligibility

Here are the joint loan eligibility criteria:

1. Co-Applicants’ Relationship:

Most financial institutions allow spouses, siblings, parents, and children to apply for the loan. Lenders may also consider close friends or business partners as co-applicants.

2. Minimum And Maximum Ages:

Both co-applicants must meet the lender's minimum and maximum age requirements. SMFG India Credit provides personal joint loans for couples with a minimum age of 21 and a maximum age of 60 years.

3. Income Requirements:

Lenders assess the combined income of personal loans with co-applicants to ensure repayment capacity. A stable income source is crucial for loan approval.

4. Credit Score:

Co-applicants' credit scores are evaluated collectively. A higher credit score enhances the chances of loan approval and favorable terms.

Factors Affecting Personal Loan Joint Application Eligibility

Factors affecting loan eligibility are:

1. Relationship Type:

Lenders often view certain relationships as more favorable. For instance, married couples may be considered lower-risk borrowers than friends or business partners.

2. Loan Amount:

The desired loan amount plays a role in personal loan joint application. Larger loan amounts might necessitate higher income levels and better credit scores.

3. Credit History:

A strong credit history for both co-applicants enhances joint loan eligibility. A history of timely payments and responsible credit management is crucial.

4. Income Disparity:

A significant income disparity between co-applicants might impact approval chances. Lenders typically prefer a balanced income contribution.

Tips To Improve Personal Loan Joint Application Eligibility

Some tips to improve personal loan eligibility for co-applicants:

1.Improve Your Credit Score:

Your credit score is one of the most important determinants of personal loan joint application eligibility. If your credit scores are less than optimal, improve them through timely bill payments, decreasing credit utilization, and addressing any inaccuracies on your credit report.

2.Increase Your Earnings And Savings:

If the current income or savings of both applicants are insufficient, consider increasing them prior to pursuing personal loans. 

3.Debt Management:

Minimize existing debts to improve your debt-to-income ratio, which is a crucial factor in loan approval. Lenders prefer applicants with a lower debt burden relative to their income.

Benefits Of Joint Loans For Couples

Here are 5 reasons why joint loans for couples are beneficial:

1. Higher Loan Limits:

Collaborative borrowing allows access to larger loan amounts, enabling the realization of more significant financial goals.

2. Better Interest Rates:

Lenders offer competitive interest rates due to the shared liability, potentially leading to cost savings over the loan tenure.

3. Flexible Repayment:

Co-applicants can tailor the loan repayment strategy according to their convenience and financial capabilities.

4. Risk Distribution:

Shared responsibility distributes the risk of loan repayment among co-applicants, providing a safety net.

5. Joint Financial Goals:

Personal loans facilitate the achievement of shared financial objectives, such as home renovations, education expenses, or travel plans.


Lenders providing personal loans to co-applicants provide a versatile solution for individuals seeking financial support for various purposes. Meeting the eligibility criteria, maintaining a good credit score, and understanding the factors affecting eligibility are essential steps to ensuring a successful personal loan joint application.

SMFG India Credit is delighted to offer you a personal loan that is 100% online application process, making it convenient for you at every stage. Once loan is approved, you can gain access to your funds within 72 hours*. We provide flexibility in loan tenures ranging from 12 months to 60 months with attractive personal loan interest rates. You can check your eligibility and compute EMIs using our online calculators. Check your eligibility and submit your application for a personal loan today!

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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.