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.
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.
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.
- 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? These are the things you will need to think about when taking on the responsibility of a loan.
- Competitive interest rate
- Additional payments OK
- Borrow up to $50,000
100% confidential application
HSBC Personal Loan
A flexible personal loan from HSBC with a tailored interest rate between 9.5% p.a. and 15.99% p.a. based on your risk profile. Early and additional repayments allowed.
- Interest rate from: 9.50% p.a.
- Comparison rate: 10.06% p.a.
- Interest rate type: Fixed
- Application fee: $150
- Minimum loan amount: $5,000
- Maximum loan amount: $50,000
Compare joint application personal loans
Use the table below to compare a range of loans you can jointly apply for.
What are the benefits of applying with another person?
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.
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?|
|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.|
|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.