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HomeBusinessCo-Applicants and Housing Loan Eligibility: Maximizing Your Borrowing Capacity

Co-Applicants and Housing Loan Eligibility: Maximizing Your Borrowing Capacity

In our country i.e. India, owning a space of your own is one of the major milestones in a person’s life as all of his savings that he does in a lifetime is invested in this asset. However, factually speaking, the amount of money required to purchase your own house in 2024 can be quite tough, especially considering the high property prices prevalent in many developed areas. Especially after the Covid-19 outbreak, the prices of real estate have gone boom. 

This is where a financial avenue namely housing loans come into play, providing individuals with the necessary fund amount. However, the question remains: how can one maximize their borrowing capacity to secure the ideal amount of loan? One of the most effective strategies here is to consider co-applicants. 

(Tip: No need to go anywhere. Just download the right home credit instant loan app on your smartphone.)

What are co-applicants? How does having them enhance your borrowing capacity? 

Co-applicants play an important role in this overall process as they apply for a loan along with the primary applicant and also share the responsibility of repaying the loan amount. While traditionally they were limited to only family members, many platforms out there now allow your siblings and close friends to be co-applicants.  

  • Increased Income

Having a reliable co-applicant is the combined income that can be considered for housing loan eligibility. Lenders assess the repayment capability based on the total income of all applicants. Therefore, if you and your co-applicant have steady incomes, it can substantially boost your overall capacity of borrowing. 

  • Creditworthiness improvement

Another benefit of having a co-applicant is the potential to improve the overall creditworthiness of the application. So, suppose one applicant has an unfavorable credit score or a history of defaults, having a co-applicant with a strong credit profile can offset these little shortcomings. 

  • Shared Financial Responsibility

By having a co-applicant, both parties share the equal financial responsibility of repaying the amount. This not only reassures the lender but also cuts down on all the kinds of risks associated with loan default. 

Furthermore, keep in mind that, even though having a co-applicant can certainly enhance your borrowing capacity, it is crucial to choose your partner wisely and understand all the implications or issues involved in this process. Even for a home loan transfer, you need to keep these points in mind.

  • Understanding

It’s very important and critical to have a high level of understanding with your co-applicant. This is simply because you will both be equally responsible for repaying the loan to the financial institution. 

  • Stability

Always go for the one who has a stable income and a reputable credit history. This strengthens the loan application and also reduces the risk of default. 

  • Exit Strategy

Have a clear and crisp exit strategy in place in case the partnership needs to be dissolved in the future. This includes provisions for loan repayment and property ownership in the event of a separation or disagreement. 

Which is the best home credit instant loan app?

Bajaj Finserv! Without a doubt, if you are looking for such a facility, then you should consider this application. Around three months ago, I used the same platform, and believe me, it is super easy to use. Highly recommended! 


Co-applicants can significantly enhance their overall borrowing capacity when applying for a housing loan in India by keeping certain things in mind. So, by leveraging the combined earnings and creditworthiness of both applicants, you can increase your chances of securing a higher amount at favorable terms. 

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