Co-applicant
Also called Co-borrower
A second person who applies for a loan with you and shares the duty to repay it.
A co-applicant is your partner on a loan. They apply with you, and they owe the money just as you do. On an education loan it’s usually a parent. Because the loan sits on both credit reports, one missed EMI hurts two credit scores.
Questions people ask
What is a co-applicant in a loan?
A co-applicant applies for the loan alongside you and is equally responsible for repaying it. Lenders often ask for one on education and home loans, usually a parent or spouse.
Does a loan affect the co-applicant's credit score?
Yes. The loan appears on the co-applicant's credit report too, so missed EMIs can lower both people's credit scores.
Is a co-applicant the same as a guarantor?
Not quite. A co-applicant is a borrower from day one. A guarantor steps in only if the borrower fails to pay. Both carry real risk, so sign only if you could repay the loan yourself.
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