Do You Need A Co-Applicant For Personal Loan Approval?

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Financial urgencies are not always expected. No one can predict what comes the next moment. When the need for money crops up all of a sudden, taking out a loan is the readily available option that you have at the moment. Among all the monetary solutions, personal loans come to your rescue with easy approval. 

Gone are the days when qualifying for loans depend on various factors. In fact, you don’t have to go through a complicated process to get your personal loan approved now. However, one question that always strikes everyone’s mind is whether or not to bring a co-applicant to qualify for a loan? Is it possible to get low interest personal loans without a co-applicant? Many questions might come to your mind related to co-applicant when you want to get approval on your personal loan request. 

Well, this post is just meant to clear all your doubts and make the application process easy. Let’s get into the guide and leave your worries aside: 

Bring Co-Applicant to Enhance Your Overall Eligibility

With the mounting expenses, it tends to get necessary to seek financial help from external sources. There is no denying that loans are the easiest way to acquire some emergency funds to meet your expenses. When you want to enhance your chances of loan approval, you should bring a co-applicant to support your loan request. Certain situations are there where a co-applicant can help you secure a loan at reasonable prices. 

Wondering where co-applicant can come to your rescue? Let’s have a look at some scenarios where you will find co-applicant useful for your loan application process: 

• When your income falls short 

For any lending firm, repayment is a major concern. When you are looking to apply for a loan, you should have a stable income as per the lending norms. If you don’t have a valid income source to convince your lender to approve you for loans, then you can bring a co-applicant. 

• Your credit score is not satisfactory

Your past borrowing record is important for lenders. This is why they look for applicants, who have a good credit score. If in case you don’t have a satisfactory credit score, you can seek assistance from a co-applicant. This way you can improve your chances of approval. 

• You don't have valid documents

From residency to income proof, you have to arrange many documents to support your loan request. If you do not have valid papers, you can bring a co-applicant and convince the lender to approve your loan request. The co-applicant makes availing a loan possible. 

Who Can Co-Sign a Loan Application for You? 

Financial institutions don’t let anyone be your co-applicant when you want to avail low interest personal loans. The reason behind it is that not everyone can qualify the eligibility criteria decided by the lenders. Making a joint application for personal loans is not at all a complicated affair anymore. Make sure the person you choose as a co-applicant is: 

• A salaried person
• Self-employed 
• 18 years of age
• A responsible borrower 
• A resident of India 
• Must have a valid proof
• Homeowner 
• Business person

Your co-applicant should be a reliable person. You can check out the above-mentioned requirement to make a person eligible to be your co-applicant for personal loans. 

How to Choose The Right Co-Applicant for You? 

Even if you find someone to be your co-applicant, you should keep certain things in mind. Finding the right co-applicant is extremely important if you want to make your decision of taking out a loan lucrative. The following factors ensure that you are finding a trusted co-applicant for your loan request: 

• Your co-applicant should have a good credit score. Despite having a good income source, it is mandatory for your co-applicant to have a good credit score. This will surely improve your chances of getting your loan approved at competitive rates. 

• Your co-applicant should have the ability to repay the borrowed amount on the scheduled time. Therefore, you should bring a co-applicant with an impressive plan for making loan repayments. 

• You both have valid documents to support your loan application. In fact, both should take the document verification process seriously. 

What If You Don’t Have a Reliable Co-Applicant? 

You might be wondering that you are not eligible to take out a personal loan if you don’t have a reliable co-applicant. However, there is nothing like that. In fact, you can seek approval on personal loans without a co-applicant. All you need to do is to provide valid proof to prove your creditworthiness. If you meet the eligibility criteria, you can easily convince your lender to consider your loan request. Having no co-applicant really does not mean that your luck is ill. You still stand a chance to acquire funds in an emergency and personal loans are easily available at highly competitive rates of interest.  

Hope, all your doubts are clear now! Whether or not you have a co-applicant, just reach out to a trusted loan advisor and boost your chances of seeking approval.