Who Can Be Co-Applicant for Loan Against Property?

Applying for a loan against property often involves a significant financial commitment, and many borrowers opt for a co-applicant to help share the burden. But who exactly can be a co-applicant for such a loan? And what are the benefits and considerations involved? Let’s delve into it.

Understanding the Role of a Co-Applicant

A co-applicant is an individual who shares the loan obligation with the primary borrower. They agree to repay the loan if the primary borrower defaults, making them equally liable. In a loan against property, the co-applicants name is listed on the property title, indicating a shared ownership interest in the property.

Eligibility Criteria for a Co-Applicant

The criteria for who can be a co-applicant for a loan against property  can vary among lenders, but the following are generally applicable:

  • The co-applicant should be a legal resident of India.
  • They should have a healthy credit history.
  • They should have a stable income source.
  • They should be ready to share ownership of the property.
  • They should be at least 18 years old.

Benefits of Including a Co-Applicant

Several benefits come with having a co-applicant for a loan against property. Some of these include:

Higher Chances of Loan Approval

Lenders are more likely to approve an application that includes a co-applicant, as it reduces the risk involved.

Reduced Interest Rates

Co-applicants can contribute to securing a lower interest rate on the loan, as the risk to the lender is diminished.

Shared Loan Responsibility

Having a co-applicant ensures shared responsibility for repaying the loan, which can ensure timely repayments.

Considerations for Choosing a Co-Applicant

Several factors should be taken into account when selecting a co-applicant for a loan against property :

Credit History of Co-applicant

The co-applicants credit history is a critical factor to consider. A healthy credit history can improve the chances of loan approval and secure favourable terms.

Income of Co-applicant

The co-applicant’s income will also influence the loan’s approval and the EMI amount they can afford to repay.

Willingness to Share Property Ownership

The co-applicant must be willing to share ownership of the property, as their name will appear on the property title.

Relationship with the Co-applicant

The relationship with the co-applicant can be a factor. Lenders may prefer co-applicants who are close family members or friends.


Having a co-applicant for a loan against property can significantly enhance the likelihood of loan approval and secure a lower interest rate. However, the co-applicant’s credit history, income, and willingness to share property ownership should be carefully considered. Discussing your options with a reputable lender can provide clarity and guide your decision-making.


1. Who can be a co-applicant for a loan against property?

Legal residents of India, who have a good credit history, steady income, are willing to share ownership of the property, and are at least 18 years old, can be co-applicants.

2. Can a co-applicant be a non-relative?

While lenders prefer co-applicants who are close family members or friends, a non-relative can also be a co-applicant, given they meet the necessary criteria.

3. What if the co-applicant defaults on their share of the loan?

If a co-applicant default, the primary borrower will be liable to repay the loan. The lender can also take legal action against both parties.

Key Takeaways

1. A co-applicant shares equal responsibility for a loan against property.
2. Co-applicants should meet certain eligibility criteria.
3. Having a co-applicant increases the chance of loan approval and reduces interest rates.
4. Consider the co-applicants credit history, income, willingness to share property ownership, and relationship with you before making a decision.

Ready to Secure Your Loan with Ruloans?

If you’re ready to navigate the process of applying for a loan against property, start your loan application journey with Ruloans today! Our team is here to guide you through every step of the process. Apply now!

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