Who can be a co-applicant for a home loan?

When considering a home loan, a key factor that can influence your loan application is the role of a co-applicant. But who exactly can be a co-applicant, and what benefits or challenges does this bring? Let’s dive into the specifics.


Understanding the Co-applicant

A co-applicant, in the context of a home loan, is an individual who shares the loan responsibility with the primary applicant. This person’s creditworthiness and financial stability can play a significant role in the loan application process.

Why Consider a Co-applicant?

Adding a co-applicant can enhance the strength of your home loan application, potentially leading to better terms, higher loan amounts, and more favourable interest rates.

Who can be a co-applicant?

Recognized Relationships for Co-applicants

Not everyone can become a co-applicant for a home loan. The relationship to the primary borrower plays a pivotal role:

  • Spouse
  • Parents
  • Children
  • Siblings (in certain cases)

Specific Requirements

Each relationship comes with its nuances:

  1. Spouse: Most commonly accepted. Both incomes can be considered for loan eligibility.
  2. Parents: If they are co-owners of the property or if the applicant is the sole owner but parents are the primary earning members.
  3. Children: Allowed if they have a steady income source and are co-owners of the property.
  4. Siblings: Some lenders allow siblings to be co-applicants if both are co-owners of the property.

It’s worth noting that while the above relationships are commonly accepted, some lenders might have additional restrictions.

What are the benefits of having a co-applicant?

  1. Increased chances of loan approval: Two credit profiles are better than one, provided both have good scores.
  2. Higher loan amount: Combined incomes can allow for borrowing a larger sum.
  3. Lower interest rate: A stronger application might fetch better interest rates.
  4. Shared responsibility: Both applicants share the EMI payment responsibility, easing the financial burden.

What are the drawbacks of having a co-applicant?

  1. Liability: Both the primary borrower and co-applicant are equally liable for the loan.
  2. Credit Score Impact: Any defaults will affect the credit scores of both individuals.
  3. Documentation: The co-applicant may also have to provide a series of required documents, similar to the primary applicant.


Having a co-applicant for your home loan can be both advantageous and challenging. While it can elevate the strength of your application, the shared responsibility is not without its set of implications. Evaluate your situation, the relationship with the potential co-applicant, and weigh the pros and cons before deciding.

Key Takeaways

  • Co-applicants share the responsibility of the loan with the primary applicant.
  • Commonly accepted co-applicants include spouses, parents, children, and sometimes siblings.
  • While there are benefits like higher loan amounts and shared responsibility, drawbacks such as shared liability also exist.


1. Can friends be co-applicants for a home loan?
Typically, lenders prefer co-applicants to have a blood relation or be legally married. Friends usually are not allowed to co-apply for a home loan together.

2. Does a co-applicant have to be a co-owner of the property?
It depends on the lender, but in many cases, lenders prefer or mandate that a co-applicant be a co-owner.

Begin Your Home Loan Journey with Ruloans Today!

If you’re looking to secure a home loan, consider doing it with Ruloans. Our expert team will guide you every step of the way, ensuring you make the best decision for your future. Start your application today!

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