Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs

SUPPORT

Menu  
 
Apply Now
Apply Now

Tata Capital > Blog > Does Co-Applicant CIBIL Score Has an Impact On Personal Loan Application?

Personal Use Loan

Does Co-Applicant CIBIL Score Has an Impact On Personal Loan Application?

Does Co-Applicant CIBIL Score Has an Impact On Personal Loan Application?

A personal loan can help you tide through all your immediate financial emergencies. However, to qualify for the loan, you must fulfill some basic requirements set by lenders. These include income, credit score, credit utilisation, and more. However, in case you don’t meet these requirements, you can get a co-applicant to boost your loan eligibility.

A co-applicant can be a close family member or a relative who is earning a regular income. Why? Because when you apply for a loan with a co-applicant, the loan is treated as a joint loan. So, if you don’t meet the eligibility requirements by yourself, the co-applicant compensates for it. But does this apply to credit scores too? Let’s take a look.

How credit score requirements work with a co-applicant

Lenders typically check the borrower’s credit score to determine their repayment capacity before approving a loan. So, the higher the credit score, the greater the loan approval chances. Typically, lenders consider a score of 750 points or above excellent and readily approve the loan.

Additional Read: What is a CIBIL Score? Why is it important while applying for a loan?

However, if you don’t meet these requirements, getting a co-applicant with a higher credit score to co-sign your personal loan application can boost your approval chances. This is because lenders are assured your co-applicant can make the loan repayments on your behalf (given their lower debt-to-income ratio) if you don’t have the funds to make it yourself. However, if you and your co-applicant are unable to repay the EMIs on time, both your credit scores suffer the consequences.

Now that we know the co-applicant personal loan impact, let’s look at the benefits of having a co-signer with a high credit score.

Benefits of having a co-applicant with a high credit score

  • Lower personal loan interest rates: If you didn’t know, lenders consider the borrowers’ credit score before determining the loan interest rate. Usually, borrowers with higher credit scores get lower interest rates since they boast a clean repayment record. Hence, if you don’t have a good enough credit score (above 750 points), you can rope in a co-applicant with a higher score and negotiate lower interest rates with your lender.

Additional Read: All You Need to Know About CIBIL Score

Final word

It’s clear that the co-applicant’s CIBIL score plays a big role in boosting the borrower’s loan approval chances and getting attractive interest rates. But choosing the right lender can get you even more benefits like quicker approval times, flexible repayment terms, and more.

If you’re looking for a reputed financier to get a loan, turn to Tata Capital. We offer a multipurpose personal loan on flexible repayment terms and minimal documentation. With us, you can choose the EMI repayment plan that matches your repayment ability. And if you need help calculating your monthly EMIs, simply use our personal loan EMI calculator on our website.

Apply Now

Get an Instant Personal Loan for all your needs !

Apply now
Popular Searches
loan without cibil personal loan for 15000 salary Loan for ring small cash loan on aadhar card pre approved personal loan What To Buy On Dhanteras Personal loan when self employed how to increase cibil score form 15g for pf withdrawal how to download aadhar card
More About Loans
personal loan personal loan eligibility personal loan interest rate pre approved personal loan overdraft loan small loans flexible personal loans personal loan documents personal loan procedure personal loan emi calculator prepayment of personal loan
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools

502 Bad Gateway

Microsoft-Azure-Application-Gateway/v2