Who is a Co-Applicant & Benefits to Co-Applicant in Home Loan - Home Loan Stories - Kotak Bank

13 AUGUST, 2019

In India, buying property has always been considered to be one of many noteworthy accomplishments in life. Many people start their financial planning at the beginning of their professional life so that one day they can buy their very own dream house. Financial institutions encourage hard-working Indians by providing home loans at attractive interest rates to make this dream come true. Nowadays, owning a house has not remained a distant goal, especially for individuals with a good credit score and a stable financial situation.
However, there are still people who find it hard to be eligible for a home loan due to current financial circumstances or a low credit score. If you are one of them, you need not worry as you can still apply for a home loan, with a co-applicant.

Who can be a co-applicant?

The criteria to be considered for being a co-applicant varies from bank to bank. However, the usual conditions adopted by most banks are as follows:  

Husband and wife:

This is the most preferred co-applicant combination in a home loan. Lenders consider the income of both, husband and wife, for eligibility and approval of the loan.

Father and son:

A combination of father and his son can co-apply for a home loan. However, final decision is dependent on the policies of the bank. .

Parents and unmarried daughters:

An unmarried daughter can be a co-applicant for a home loan with either her father or mother or both parents.

Benefits of having a co-applicant in home loan

  • When both co-applicants have a good credit score and stable income, the likelihood of loan approval increases.
  • Home loan lenders offer attractive home loan interest rate to co-applicants having financial stability and good credit score
  • The co-applicants, who are co-owners of the property, get to enjoy combined tax benefits.
  • Co-applying for home loan increases the eligibility of both applicants for it.

The co-applicants need not always be co-owners of the property in the home buying process. Furthermore, co-applicants are legally bound to repay the home loan in case the principal borrower fails to do so.
They say, share the burden and it becomes easy to carry it. The same can also be said when it comes to home loans. With the help of a co-borrower, repayment of the home loan becomes easier as well.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.