A Joint Personal Loan for a stress free EMI Payment (November 2022)

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Has your personal loan application been rejected? Want to get an instant approval for your personal loan? Then applying for a Joint Personal Loan is the best alternative. Availing of an instant personal loan becomes easier if you do so with a joint venture. Be it a guarantor or a co-applicant, we all have help if we learn to ask. But how do a guarantor & a co-applicant differ and help you with EMI payment. Will a co-applicant or a guarantor ease your burden on repayment or credit score

This article will you a clarity and help you to choose the wiser options while availing of an instant personal loan

Co-Applicant for Easy EMI 

If your loan application has been rejected, you can still apply for a personal loan with a co-applicant or guarantor (also known as Joint Personal Loan). A co-applicant is a someone with whom you apply for an instant personal loan. This enhances your loan approval and eligibility, if your co-applicant has a good income & credit score.  

The next question is, who can be co-borrowers? In most scenarios, it is usually the family members, like your spouse or parents. Of course, some lenders allow your siblings to be allocated as co-applicants. 

Similarly, if the co-applicant has a bad credit score or bad income proof, the chance of availing of a loan is likely low. Here, a default will affect both scores.

Guarantor for easy EMI 

Usually, banks require guarantors before they approve any personal loans. A guarantor is a person or institution liable for the loan as a principal borrower. A guarantor gives consent to the lender that they will be backing the borrower in case of defaults.

But not every personal loan is a “guarantor” personal loan. Banks and other financial institutions prefer guarantors with good income over Rs. 25,000 to qualify for consent.

A guarantor should be aware of the consequences of the loan default and will bear the responsibility of repayment in case of the borrower default. A guarantor loan is an unsecured loan whose signature is mandated on the credit agreement.

Also Read: A Comprehensive Guide for Getting a Personal Loan in Bangalore!

Role of a Guarantor If you Default on your EMIs  

Any bank or financial institution requires a guarantor for loan approval or disbursal. When you or another person who signs up as a guarantor will be responsible for the loan as a principal borrower.

  • The Role of the Guarantor:

    If you are likely to pursue the role of a guarantor for your friend who needs an instant personal loan at the earliest, here is what you should know. You are giving consent to the lender that you’ll be financially backing the borrower in case the borrower defaults.

  • EMI Payment

    If you or your borrower forgets to pay your instalment or decide not to pay the loan, it will be the sole responsibility of the guarantor. If the guarantor fails to pay the outstanding amount, the bank will file criminal proceedings against them. In return, this will hurt credit rating. CIBIL keeps track of guarantors and borrowers in case of defaults. Finally, even if the guarantor has always been prompt with his loan repayments, his rating will still take a hit from the loan he has given consent to gets defaulted.

  • Joint Personal Loan with Guarantor


    Sometimes, the banks approve additional loans to the principal borrower or guarantor without written consent. It naturally goes to the guarantors’ pocket who intend to help out. Thus, it is a bold and risky decision to be a guarantor in an unsecured personal loan. One should carefully examine the loan requirements and details of the actions in case of default. One should only become a guarantor if the capacity holds safe for complete repayment & intentions of the borrowers.

Also Read: Make Life Easier With No Charge EMI!

Role of a Co-applicant if you Default on your EMIs

Who will not like extra support while applying for an instant personal loan? Especially if it means including your spouse too. Co-applicant’s hand makes it easier for the approval of a heavy amount of loan.

  • The Role of a Co-Applicant:

    A co-applicant applies along with the applicant from a bank or financial institution. They accept the equal responsibility of repaying the installment on time if the borrower doesn’t pay. So, only co-owners can become co-applicants. In this case, the co-applicants are none other than your spouses or, in some cases, parents. However, it can be simple, whereas father & son, husband & wife, parents and unmarried daughter can also apply as a co-applicant. It serves well if you’re availing of an instant personal loan for buying a new home or home refurbishment.

  • EMI Payment:

    Sometimes buying a house of more significant value will need a joint money venture to meet the eligibility criteria and quick approval. Since the applicant and co-applicant have equal responsibility for the installment repayment, it is reasonably necessary for both to know the liability of payments. A joint loan account is based on both individuals’ credit reports. If the applicant loses a chance to repay the EMI on time, the negative credit report will report to your co-applicant. The negative plunge in credit scores is unified via a joint loan account.

  • Credit Score:

    It’s a rule by an application that both the applicant & the co-applicant should ensure paying back the EMIs on a due date regularly. Checking your CIBIL report and score regularly will help you understand your credit history and journey. If your credit report shows a default in one of the EMIs, take constructive measures to improve it before the tenure closes. You should enhance your credit score before you apply for another loan in the future. Lastly, your next loan will leave you with a hassle-free journey to owning your instant personal loan and your dream home.

Also Read: Simple Ways to Pay Off Your Personal Loan Quickly 


Instant Personal loan eligibility is always dependent on you; however, a co-applicant and a guarantor serve as a catalyst & consent in a loan approval. Hope this article would have helped you understand the key responsibilities of a guarantor and a co-applicant and what the consequence proves in case of default. Also, if you are looking for an instant personal loan, look no further than Buddy Loan, one of the biggest loan aggregators in India. Buddy Loan helps you avail of a personal loans at lower interest rates starting at 11.99%p.a., with customized EMIs to make your repayments easier. 

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