Who Is A Co-Applicant In A Home Loan?

By BankBazaar | October 25, 2017

A Home Loan is a huge responsibility. But, with a co-applicant, you can share this responsibility and ease the financial burden. Learn all about a co-applicant in a Home Loan.

Taking a Home Loan is a big responsibility to shoulder. There are multiple factors associated with a Home Loan and it’s not always possible to take this on single-handedly. Sometimes, things like eligibility, income, and the loan amount and tenure can be a tad difficult to handle with a single income. In such cases, the applicant can choose to take a loan alongside a co-applicant.

In other words, two people can apply for a single loan by being co-applicants and take over responsibility towards the loan.

Additional Reading: Watch Out For These 6 Important Things When Getting A Home Loan

Who is a co-applicant?

A co-applicant refers to a person who applies along with the borrower for a loan. This is done so that the income of the co-applicant can be used to supplement the borrower’s income and increase his/her eligibility.

Check your eligibility for a Home Loan here

Can anyone be a co-applicant?

No, Banks and Housing Finance Companies (HFCs) have allowed only a few specified relations to be co-applicants. Although, it must be noted that it is not a compulsion or legal requirement to have a co-applicant. Banks also do not allow a minor to be a co-applicant.

You also need to note that any co-owner has to compulsorily be a co-applicant to the loan.

Additional Reading: Terms For Adding Co-applicants To A Home Loan Application

Who can be a co-applicant to my Home Loan?

Most of the banks in our country allow a few specified relations to be co-applicants. Brother-brother, father-son, mother-son, husband-wife etc. are acceptable combinations to be borrowers and co-applicants.

  • Father and son

In case of father and son, if the borrower is the only son, then, he can jointly apply with his father where both their incomes will be taken into consideration. The property should be in their joint names.

In case a person has two or more sons and if he wants to apply jointly with one of them or both of them, then he should not be the main owner of the property. This is because, on his death, his children should succeed to the property jointly and may cause an inheritance dispute. In this case, the father can only be taken as a co-applicant and his income may be considered for the loan. He may be the co-owner or not own the property at all.

  • Unmarried daughter and father

An unmarried daughter is eligible to apply jointly with her father. In this case, unlike father and sons, the property has to be only in the name of the daughter and the income of the father should not be considered. This is to avoid any legal complications later on when the applicant (daughter) gets married.

  • Unmarried daughter and mother

An unmarried daughter is eligible to apply jointly with her mother. In this case, unlike father and sons, the property has to be only in the name of the daughter and the income of the mother will not be considered.

  • Brother and brother

A brother may apply with his brother, provided, they are currently staying together and be determined to do so in the new property as well.

  • Husband and wife

One can include one’s spouse as a co-applicant for a Home Loan. His or her income will be included for working out the loan eligibility. In fact, from a bank’s perspective, this is an ideal situation and they would be very happy to have the husband/wife as co-applicants.

Additional Reading: Home Loan Document Checklist

Who cannot be co-applicant?

As can be understood from the above discussions the following relationships cannot be a co-applicant for a loan:

  • Married daughter & mother/father
  • Sister and sister
  • Sister and brother

What is the role of a co-applicant?

A co-applicant is completely responsible for the loan if the partner defaults, dies or otherwise refuses to participate in the partnership. The bank will pursue collection from one applicant without consideration of the partnership agreement.

Experts say that technically, a co-applicant becomes a co-borrower and by being a co-borrower, he is liable for the repayment of the loan and other dues.

Thus, a co-applicant becomes equally liable for repayment of the loan amount in case of non-payment by the borrower. The co–applicant will also be responsible for repayment of the loan in case of death of the primary borrower, even if there is insurance cover to the primary borrower.

Many banks and financial institutions insist on having a co-applicant but it is more of a necessity than a requirement. There is no legal requirement to have a co-applicant.

Additional Reading: Home Loan Handbook: All Questions Answered

Benefits of having a co-applicant

  • Higher success rate of your loan approval
  • Increased eligibility can help you buy a bigger house and get a bigger loan too
  • Tax benefits for both the applicants and co-applicants

Additional Reading: 5 Hidden Home Loan Tax Incentives

Check out these tax benefits before you apply for your Home Loan. And if you think you’re ready to take a Home Loan, then you’ve come to the right place.

Additional reading: Home Loan Handbook: All Questions Answered

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48 thoughts on “Who Is A Co-Applicant In A Home Loan?

  1. Bhuvneshwar

    Can Two Directors be co-applicant having no blod relationship in between them?

    Reply
  2. rppathak

    This article is having very useful and important tips/ knowledge about co-applicant. I really do not know previously that the role of co-applicant. Thanks for providing the such information. rppathak/ solapur/ maharashtra

    Reply
  3. xyz

    What happens when husband/wife go for a divorce? How does a bank guarantee that the co-applicant in this case will repay?

    Reply
  4. Cute doll

    Can you please advise how to add my spouse as co-applicant? I availed the loan before marraige; now I would like to include my spouse as co-applicant. But when enquired in the bank, co-applcant could not be added now and should have been added while applying for loan. Is there no way to add my spouse as co-applicant at this stage? Please advice.

    Reply
  5. Moiz

    A bank has issued a housing loan in name of 2 co borrowers (husband & wife) can the wife whose name is second claim housing loan interest & principal for relief in income tax in her return when she actually pays the loan instalments from her taxable income ? Kindly reply. I am an STI subscriber.

    Reply
  6. sameer

    Can i take home loan with my brother's wife. Means can take joint home loan

    Reply
    1. praveen

      No, Sameer. You can not avail a home loan with your brother's wife, none of the banks or the housing finance companies allow this.

      Reply
  7. naina

    this is very much unfair with daughters ..as married daughter and her father home loan is not possible..
    even though daughters financial s good ..

    very much unfair for girls in INDIA ….. very much depressing ..

    Reply
    1. p.k.das

      Yes you are right. Bank should change such policy. Its not acceptable. When father & sons can be applicant why not father & daughter. Indeed now days daughters who are taking care of their parents more than sons. Women well fare associations should protest such policy of banks. Banks can implements some clauses. But not directly denied.

      Reply
  8. abc

    Can one purchase a property and register in others name or include others in the registration (When purchaser take the loan from home bank)

    Reply
  9. suresh

    house is in my wife's name and she is not employed. Can i get home loan in my name to construct further ?

    Reply
  10. SHRADDHA

    can i apply for a home loan as i am not married within 3 months il be getting married
    can the loan be applied before 3 months of marriage

    Reply
    1. Team BankBazaar

      Hi Shraddha,

      You can apply for a loan whenever you want. The loan will be based on your income, liabilities, and repayment capacity. If you want, you can add your husband as a co-owner after marriage.

      Cheers,
      Team BankBazaar

      Reply
  11. abhijeet

    I took axis home loan . my wife is co applicant .
    They told me we took ur wife name as a non financial co applicant. If I died then bank covers remaining amount from my wife or life insurance
    Policy?

    Reply
    1. Team BankBazaar

      Hi Abhijeet, Thanks for writing to us. You will need to get in touch with your bank for more information regarding your query. As your query is specific in nature, your bank will be in a good position to answer it. Cheers, Team BankBazaar

      Reply
  12. SRINIVASAN

    MY BROTHER GOT HOME LOAN FOR RS. 25 LAKHS ON THE PROPERTY OF HIS WIFE AND SHE IS ALSO A CO-BORROWER. HIS WIFE DIED AFTER 3 YRS OF LOAN
    BROTHER HAS INSURANCE ON HIS NAME . IA HAVE A DOUBT THAT,
    WHETHER THE INSURANCE COMPANY WILL PAY THE REAMING AMOUNT OF LOAN .
    WHAT WE HAVE TO DO AFTER THE DEATH OF HIS WIFE . PLS SUGGEST ME

    Reply
    1. Team BankBazaar

      Hi Srinivasan,
      Thanks for writing to us. You will need to check the insurance policy to see if loans are covered. Some policies do have this option. Get in touch with your insurance company and provide them with the name of the policy, for more details. For information about Home Loan Insurance, you can read this article – Insurance Protection For Home Loans.

      Cheers,
      Team BankBazaar

      Reply
  13. surajit dey

    I want to home loan but my co-applicant is my grandmother(my mother side ) is this possible

    Reply
    1. Team BankBazaar

      Dear Surajit,
      Thanks for writing to us. It is possible to have your grandmother as a co-applicant if she is still earning an income or receiving a pension. Click here to check your eligibility for a Home Loan. Once your eligibility has been assessed, all you need to do is submit your documents and you could have your Home Loan very soon.

      Cheers,
      Team BankBazaar

      Reply
  14. sabin

    your article says brother and sister can’t be co applicant but as per corporation banks web portal says it can any coment on this

    Reply
    1. Team BankBazaar

      Dear Sabin,
      Thanks for writing to us. Generally, a brother and his sister cannot be co-applicants but there might be exceptions made by some banks. Also, there might be terms and conditions attached to the same so remember to check this before going ahead and applying for a loan.

      Cheers,
      Team BankBazaar

      Reply
  15. Prabhat

    Can my wife and my father became a co applicant for the car loan, and what documents need to became co applicant.

    Reply
    1. Team BankBazaar

      Hi Prabhat,

      It is possible for your wife and father to be co-applicants on your Car Loan. However, only one co-applicant might be allowed for a Car Loan. Please check with your bank. The documents needed for a co-applicant will be the same as those needed for an applicant.

      Cheers,
      Team BankBazaar

      Reply
  16. Vinay choubey

    Dear sir .

    I wife expired in 2002 .i stay with my daughter she is 17 years .Can i get a home loan .what should i do to get a home loan .Can i get it without a co applicant .

    Regards

    Reply
  17. sanjay Singh Hada

    Dear sir,
    I want to take a home loan with my brother as co-applicant and co-owner, i am living in jaipur and he is in pune. Cant this be possible

    Reply
    1. Team BankBazaar

      Hi Sanjay,

      It is possible to take a loan along with your brother. Click on this link if you would like to apply for a loan.

      Cheers,
      Team BankBazaar

      Reply
    1. Team BankBazaar

      Hi Tokato, It may not be possible to have your brother-in-law as a co-applicant. Please check with SBI, though. Cheers, Team BankBazaar

      Reply
  18. Lalit Anand

    I have an educational loan on my name and my father is co-applicant. Recently, my father died and a good friend suggested I can claim insurance for my father’s death if bank has done insurance on his name too. Is it true. If yes, what is the procedure?

    Reply
    1. Team BankBazaar Post author

      Hi Lalit,
      Please let us know what insurance you are talking about. If your father had life insurance in his name, you can make claims under that policy.
      Cheers,
      Team BankBazaar

      Reply
  19. Nagu

    House is in my brother’s name and he is not employed. Can i get home loan in my name to construct further ?

    Reply
    1. Team BankBazaar

      Hi Nagu,

      Since the house is not registered in your name, you will not be eligible for a Home Loan. However, here’s what you can do. Approach a lawyer and get yourself registered as co-owner of the house along with your brother. As a co-owner, you will be able to get a Home Loan in your name.

      Cheers,
      Team BankBazaar

      Reply
  20. Devendra

    Hi,

    I am planning to take Home Loan along with my own brother.
    I have one confusion because as per the date of records mine and and my brother is just one month difference. but actually we are 2 years difference. May i know will this cause any problem while applying for home loan together.

    Just for reference: Mine is 14/07/1989 and my brother’s is 18/07/1989 . In school they have written like this and now i am actually worrying will this cause any issues while applying for home loan together. Please share your inputs ?

    Your valuable inputs are most welcome!

    Thanks
    Devendra

    Reply
    1. Team BankBazaar

      Hi Devendra,

      This seems like an incorrect entry in your records. You will need to check with the bank from where you are getting a loan to see if this will be an issue.
      On the other hand, if you have a valid ID proof with the correct details of your birth date then that is sufficient to submit while applying for a Home Loan.

      If you’d like to apply for a Home Loan online, click here

      Cheers,
      Team BankBazaar

      Reply
  21. Ashwini

    Hi,
    I want to make my 2 elder brothers co-applicant of my home loan. We have planned to live together and the EMIs will be paid by me only.
    My question is will I get the full tax benefit or will it be divided between 3 of us ?

    Reply
    1. Team BankBazaar

      Hi Ashwini,

      The tax benefit can only be claimed in the proportion in which you will own the house.

      Cheers,
      Team BankBazaar

      Reply
  22. bakul yagnik

    names on the agreement two married sisters, one indian resident and other nri can first name holder apply for the housing loan along with her husband as co applicant

    Reply
    1. Team BankBazaar

      Hi Bakul, Both husband and wife can be co-applicants for a Home Loan. Cheers, Team BankBazaar

      Reply
      1. bakul yagnik

        but husbands name will not be there in agreement , banks are saying that loan is not possible
        please inform which bank will give loan in these circumstances

        Reply
        1. Team BankBazaar

          Hi Bakul, Typically if husband and wife are co-applicants for a Home Loan, the bank would want them to be co-owners too. Although most banks follow this, we kindly request you to check with your bank for further clarification. Cheers, Team BankBazaar

          Reply
  23. JATIN CHAWLA

    Hi, i’d my brother as co applicant in my home loan 18 years ago, now home loan is on its finalization years & my brother does not live with me anymore, can he create any trouble while claiming his ownership in this property.

    Reply
    1. Team BankBazaar

      Hi Jatin,

      Unless the property was registered in both your name and your brother’s name, he cannot claim your property.

      Cheers,
      Team BankBazaar

      Reply
  24. Rohit

    I and my brother taken home loan jointly and home loan being paid by me since 3 years.
    Now due to some personal family issue I told him to pay personal loan or give me my 50% money.
    He is not ready to pay home loan as well as not ready to give me my money.
    I have taken new home loan and new house and shifted.
    but he is not paying the home loan where he is living.
    Please tell me what to do

    Reply
    1. Team BankBazaar

      Hi Rohit,

      We’re sorry to hear about your family fall out. We suggest speaking to him once again about it, if he still doesn’t respond positively, then we suggest you sort legal help to deal with him.

      All the best!

      Cheers,
      Team BankBazaar

      Reply
  25. Ajit

    Can you explain this line more ?
    The co–applicant will also be responsible for repayment of the loan in case of death of the primary borrower, even if there is insurance cover to the primary borrower.

    If there is a insurance cover why is co-applicant liable to make the payment ? The insurance amount must be settled again the outstanding, no ?

    Reply
    1. Team BankBazaar

      Hi Ajit,

      Home insurance only covers loss/damage to your property in the event of a calamity. It will not cover your Home Loan EMIs. This is why the co-applicant will need to fulfill the EMIs for their Home Loan in the event of death of the primary borrower.

      Cheers,
      Team BankBazaar

      Reply

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