Get your application over the line or assume equal responsibility for finance. Find out the benefits of applying for joint personal loans.
Whether you’re looking to finance a car, home renovations or a holiday, there isn’t only one way to secure that financing. Applying for a personal loan as part of a joint application can help you tick more eligibility boxes than you can on your own. It’s also a way for you and your partner to assume equal financial responsibility for a large purchase.
Several lenders offer joint applicant personal loans. This guide will shed some light on these loans and how this type of financing works.
Joint applicant personal loan comparisons
Use the table below to compare a range of loans you can jointly apply for.
How do you apply for a joint personal loan?
You and the person you’re applying with will provide personal, employment and financial details as part of the application. This may be done in one application or in separate sections. The lender will consider the application details as a whole when considering both your eligibilities for the loan.
The types of personal loans you can apply for with a joint application
You have a few options available when it comes to joint application personal loans, including:
- Secured personal loans. If you want to purchase a vehicle or hold equity in your home and want to use it as a guarantee, a secured personal loan can be an option to consider. These loans let you use an asset you already own or one you are looking to purchase as security for the loan.
- Unsecured personal loans. Joint applicant personal loans are available without security as well. These loans tend to come with higher interest rates and stricter eligibility criteria, as they are considered by the lender to be more risky. A joint application is one way to reduce this risk.
- Personal overdrafts. Joint accounts are common for people living under the same roof, as they provide a convenient way to manage monthly bills. To avoid the fees associated with overdrawn accounts, personal overdrafts applied for with joint accounts are a convenient option.
Here are the features of joint application personal loans
These loans are an option for several reasons, and they provide a variety of benefits. Here are some of the features:
- Increase your chances of approval. If you are on a lower income, self-employed or just want to bolster your application, a joint personal loan can be a way to do it. The details of both applicants will considered by the lender.
- Share an asset. If you’re planning to share the asset you’re purchasing, such as buying a car with your partner, a joint application could make more sense than one of you applying by yourself. Consider your own personal situation to decide what will work best for you.
- Be eligible for a larger loan. You may be eligible for a larger loan if you apply with a partner. As you both agree to manage the repayments, the lender will consider the income and financial situation of both applicants when deciding how much to lend you.
- Consolidate large debts. If you and your partner have large debts separately, you can both save by applying for a joint debt consolidation personal loan. Split the monthly repayment according to how much debt you contributed to the loan and benefit from the reduced interest and fees.
What are the important points to remember about these loans?
Before you start your application, there are a few things to consider:
- If you are approved, you will assume equal responsibility for the loan with the person you are applying with. This means if either one of you becomes unable to repay, the other is still responsible for the repayments.
- Lenders have specific conditions that need to be met for joint personal loan applications. These need to be reviewed before you apply – take a look at the table below to compare conditions of lenders.
- You may be eligible for a higher loan amount when submitting a joint personal loan application. It’s important not to take on more of a loan than you need or can afford, even if you are approved for it.
- Joint personal loans are a serious responsibility. Consider the relationship you have with the person you’re applying with and their financial situation. Is their job stable? What is their credit history like? Are they likely to default? These are the things you will need to think about when taking on the responsibility of a loan.
Which lenders offer joint applicant personal loans, and are there any conditions?
|Lender||Joint applications accepted?||What personal loans can you apply for jointly?||What conditions are there?|
|act.||Secured and unsecured personal loans||You must be listed on the loan as a borrower to apply online and there can't be more than two applicants.|
|ANZ||Fixed rate, variable rate loans and car loans||All applications are subject to ANZ's normal credit approval criteria.|
|Aussie||Debt consolidation, home renovation and car loans||You can apply as a married couple or a de facto couple.|
|Bankwest||Car loans and unsecured personal loans||Up to two people can apply.|
|Bank of Melbourne||Secured and unsecured loans, personal overdrafts and lines of credit||If the car you are using as security for the loan is in two names, you need to apply for the loan in the same two names.|
|BankSA||Secured and unsecured loans, personal overdrafts and lines of credit||If the car you are using as security for the loan is in two names, you need to apply for the loan in the same two names.|
|Cashfirst||Unsecured and secured loans for bad credit and self-employed|
|CommBank||Variable rate, fixed rate and secured car loans||The joint applicant must be someone who will directly benefit from the loan.|
|CUA||Fixed and variable rate personal loans.||Up to four people can apply.|
|Fair Go Finance||-||-|
|Gateway Credit Union||Secured car loan and unsecured personal loan||You can apply, but you need to download and fax the application or call Gateway.|
|Latitude Financial Services||Secured and unsecured personal loans||Up to two people can apply.|
|IMB||New car loans, unsecured and secured personal loans||You need to be applying as married or de facto joint borrowers.|
|loans.com.au||Car loans||Up to two people can apply.|
|Max Finance||Bad credit personal loans||Joint applications accepted.|
|ME Bank||Unsecured personal loan or car finance||Up to two people can apply.|
|NAB||Unsecured fixed and variable rate loans and car loans||Up to two people can apply.|
|NRMA||Car loans||Up to two people can apply.|
|RACV||Car loans, personal loans and debt consolidation loans||Up to two people can apply.|
|St.George||Secured and unsecured loans, personal overdrafts and lines of credit||Both applicants must personally benefit from the loan.|
Joint personal loans can be a convenient option, no matter what reason you’re applying for. Think about who you are entering into the agreement with, both you and their ability to manage the loan, and whether you’re taking on the right loan for the both of you.