A joint application personal loan makes it easier to get approved, and could let you borrow even more. You can apply with a parent, sibling, partner or friend.
A joint personal loan is where 2 borrowers apply for a loan together and jointly carry the responsibility of repaying the loan.
The benefit of a joint personal loan is that you may have a higher borrowing power because the bank takes both financial circumstances into account.
The risk of a joint personal loan is that if one person can't repay or just decides not to, the other person still needs to pay the entire repayment.
What are joint personal loans?
A joint personal loan means 2 borrowers apply for a loan together. They complete a joint application and both people assume responsibility for repaying the loan.
If one borrower stops making repayments, the other borrower will have to cover the costs. This is the biggest risk of a joint personal loan.
Why take out a joint personal loan?
Borrowing money with a joint personal loan can:
Increase your chances of getting a loan approved.
Let you borrow more than you could by yourself.
Make it easier to cover the repayments.
Borrowers who haven't built up much credit history, or who can't meet a lender's eligibility criteria alone, may find it much easier to apply for a personal loan with a partner, friend or family member.
What do I need to know before applying for a joint personal loan?
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.
Both applicants will need to meet the criteria for the personal loan.
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?
Before taking out a joint personal loan, it's a good idea to have a clear agreement about who will pay what. You could divide the repayments equally, or any way you like.
Make a plan before you apply, and budget for the loan costs. This includes monthly fees and the loan repayments.
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. The lender will consider the application details as a whole when considering both your eligibilities for the loan.
Personal loans in Australia
The lowest unsecured rate in Finder's database is 5.76% and the average is 10.51%. The lowest secured rate is 5.67% and the average is 9.66%. The average Australian is carrying $24,333 in personal loans (including car loans). Most people take out personal loan terms of 3 years. 25% say they're concerned about the amount of debt that they have.
Source:Finder's database and consumer sentiment tracker
Pros and cons of joint personal loans
Here are some of the pros and cons:
Pros
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 be 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.
Get 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.
Consolidate large debts. If you and your partner have large debts separately, you could both save by applying for a joint debt consolidation personal loan. Just make sure the new loan's fees and repayments work out cheaper than the original debts.
Cons
Joint responsibility. If your co-borrower refuses to or is unable to meet repayments, you will likely have sole responsibility for paying back the loan.
Risk of over-borrowing. Just because you can borrow more with a joint application doesn't mean you should. Do not borrower more than you can comfortably afford to repay.
Relationship tension. Money can cause problems within any relationship. It's important to ensure that the person you are borrowing with is capable of repaying the loan alongside you, and emotionally responsible enough to share a debt with.
Credit at risk. If you or your loan partner defaults on the repayments it could impact both your credit scores. This makes it harder to get a loan in future.
Who can I apply for a joint loan with?
You can apply jointly for a personal loan with anyone as long as they're willing.
A parent. Getting a joint personal loan with a parent can help younger people to build their credit rating, while making it easier for them to qualify for finance. However, if you would prefer to have your own loan, but with the help of a parent, a guarantor personal loan could also be an option.
Your sibling or relative. If you want to make a large joint purchase, or perhaps go on holiday with a sibling or other relative, you can take out a joint application personal loan with them to help you both cover the cost.
A friend. There's nothing to prevent you from getting a joint personal loan with a friend. However, be aware that finances can cause a strain on relationships, and it can be risky to get a loan with a friend.
Your partner. Getting a loan with your spouse or romantic partner is the most common form of joint personal loan.
Our expert says: Be sure you trust your co-applicant
"When it comes to taking out a joint personal loan you need to be really certain you trust your joint applicant. Although a joint application can make it easier to get a loan, it can also go the opposite way. You need to be sure they are in a strong financial position to support your application. You also need to be sure they can continue to carry their weight in repaying the loan for the duration of the loan term, which is often several years."
Frequently asked questions about joint personal loans
A joint personal loan can increase your chance of approval and also increase the amount you could borrow. While this may be better for your goals, you should also consider the risks that can come from applying with another person. Assuming both applicants are using the money, you need to be sure you can trust each other with meeting the repayments. Even if one person fails to repay, the other will need to make sure repayments continue to be met. You also need to make sure you can afford to pay back the higher amount you may be approved for.
As with any loan, a joint personal loan will affect the credit scores of both applicants. By appearing on both credit reports, if there are any problems in repaying the loan both parties will be affected - even if it is the fault of only one person.
With over 20 years of experience in property, finance and investment journalism, Sarah is a trusted expert whose insights regularly appear across television, radio, and print media, including Sunrise, ABC News, and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker, and her expert advice has been shared in the media over 3,500 times since 2023 alone. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards.
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I’m 77 years of age and am looking for a loan of $6,000 as I want to travel. Income is the single age pension $29874, Rent is $133.20 per week, health good, no other loans or debts. repayable over 2. years.
Finder
SarahJuly 28, 2025Finder
Hi Robert,
It might be tricky to get a loan based on your income. One option might be a credit card suitable for those on the pension, there are a few options here. Another option could be a No-Interest Loan (NILS), which gives you access to up to $2,000 which you can repay with no interest – they have criteria for what the money can be spent on, but travel might be eligible under the category of “wellbeing and life event expenses”. Best of luck and hope you get to enjoy your trip!
LorrieMay 16, 2025
Where can I get a joint personal loan for a mother and son
Finder
RichardMay 19, 2025Finder
Hi Lorrie,
You can apply for a joint personal loan as a mother and son. Joint personal loans are not just for spouses/partners. Some lenders like Now Finance do specify that joint loan applications are only for couples, but many lenders don’t have this requirement.
Finder
RebeccaMay 19, 2025Finder
Hi Lorrie,
The providers we display in the table on this guide will typically accept a joint personal loan application. You can start an application and one of the first questions will be asking how many people are applying. You can select 2 people. There are generally no rules around the relationship of the 2 borrowers.
Thanks,
Rebecca
BrettMay 6, 2025
Can you get a loan on the pension
Finder
SarahMay 6, 2025Finder
Hi Brett,
This guide runs through personal loan options for those on a pension, it’s worth looking at some options here. You may also be eligible for a $3,000 no interest loan through Good Shep, which could be helpful? Lastly, the National Debt Helpline might be helpful as they have free financial counsellors. Hope this helps!
HughApril 22, 2025
Looking for $1000 repay within 12 months. For dental. On pension 45000 pa. Can you help
Otherwise, you might want to look up some payday loan options. Note that the fees and rates on these loans can be quite high, so make sure you’re clear on all the costs involved.
Find a low interest loan by comparing your options with Finder. See interest rates, fees, and features for loans across Australia, plus guides to help you get the best deal.
Find out exactly what you need to know when it comes to cheap personal loans, including working out if a loan is really competitive.
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I’m 77 years of age and am looking for a loan of $6,000 as I want to travel. Income is the single age pension $29874, Rent is $133.20 per week, health good, no other loans or debts. repayable over 2. years.
Hi Robert,
It might be tricky to get a loan based on your income. One option might be a credit card suitable for those on the pension, there are a few options here. Another option could be a No-Interest Loan (NILS), which gives you access to up to $2,000 which you can repay with no interest – they have criteria for what the money can be spent on, but travel might be eligible under the category of “wellbeing and life event expenses”. Best of luck and hope you get to enjoy your trip!
Where can I get a joint personal loan for a mother and son
Hi Lorrie,
You can apply for a joint personal loan as a mother and son. Joint personal loans are not just for spouses/partners. Some lenders like Now Finance do specify that joint loan applications are only for couples, but many lenders don’t have this requirement.
Hi Lorrie,
The providers we display in the table on this guide will typically accept a joint personal loan application. You can start an application and one of the first questions will be asking how many people are applying. You can select 2 people. There are generally no rules around the relationship of the 2 borrowers.
Thanks,
Rebecca
Can you get a loan on the pension
Hi Brett,
This guide runs through personal loan options for those on a pension, it’s worth looking at some options here. You may also be eligible for a $3,000 no interest loan through Good Shep, which could be helpful? Lastly, the National Debt Helpline might be helpful as they have free financial counsellors. Hope this helps!
Looking for $1000 repay within 12 months. For dental. On pension 45000 pa. Can you help
Hi Hugh,
You might be eligible for the Good Shep no interest loan, you can get more info here: https://goodshep.org.au/services/nils/
Otherwise, you might want to look up some payday loan options. Note that the fees and rates on these loans can be quite high, so make sure you’re clear on all the costs involved.
Hope this helps!