Impact of Co-Applicant on Personal Loan Eligibility | Kotak Mahindra Bank - Personal Loan Stories
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15 DECEMBER, 2021

When you apply for a personal loan, the lender checks your personal loan eligibility. If you meet their eligibility criteria, your loan is approved. However, if you are unable to fulfil the eligibility, they can reject the loan application. Alternatively, they could suggest you to avail a joint personal loan by having a co-applicant. Having a co-applicant often makes it easier to avail loans.

But before you apply for a personal loan with a co-applicant, you must know if your co-applicant affects your loan eligibility. The answer is yes. Your loan eligibility can be affected by the presence of a co-applicant. Continue reading to know more.

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Who Is a Co-applicant?

A co-applicant is a person with whom you can apply for a loan. Such loans are called joint loans. When you apply for a personal loan with a co-applicant, their income and credit score is added to yours. You can avail a joint personal loan with your spouse, parents and siblings.

What Is Personal Loan Eligibility?

To avail a personal loan you need to fulfil the following personal loan eligibility criteria:

  • You should be an Indian resident employed with an MNC, public or private limited company.
  • You must be between 21-58 years of age.
  • You should be at least a graduate with a minimum work experience of 1 year
  • Your minimum income should be at Rs 25000, depending on your city of residence.
  • You must have a credit score of 700 and above.

How Does a Co-applicant Affect Your Personal Loan Eligibility?

  • Your co-applicant can significantly enhance or deplete your credit score, which is important for your personal loan eligibility.
  • Your co-applicant is responsible to share the repayment of the loan with you. If your co-applicant defaults in paying the EMI, it can affect your credit score.
  • On the other hand, if they have an excellent credit score, it can enhance your loan eligibility and be beneficial for you.
  • Your co-applicants’ credit score does not impact your credit score in any way, but if they have a low credit score, it can lower your eligibility. A co-applicant with a low credit score can reduce the chances of your loan approval.
  • When you avail a personal loan with a co-applicant, the lender considers the income of both the applicants to determine eligibility. Therefore, if you have a low income, your co-applicant's income can bridge the gap and enhance your personal loan eligibility.
  • If your co-applicant has a higher credit score or income, it can help you get a higher loan amount and lower interest rates.


Having a co-applicant for a personal loan can help you avail higher loan amounts at competitive personal loan interest rates. However, you must be aware that they can deplete your credit score. Before you take a joint personal loan, you must check the credit score of the co-applicant to avoid any nasty shocks in future. So, wait no more and apply for personal loans, today.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. 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 the Bank. The Bank, 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. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.