Most people who choose to serve as a co-applicant or a co-signer do not know the difference between the two. Co-borrowers, co-signers, co-applicants and co-owners have different legal and financial responsibilities. Depending on the role you have chosen, your responsibility towards loan repayment will vary too. Therefore, one must make themselves aware of the differences between these various roles so that one can make right decisions regarding what role they can play efficiently.
Who is a Co-Applicant?
A co-applicant is an individual who shares full responsibility for loan repayment. For instance, if Mr A and Mrs B have taken a loan together and are co-applicants on a loan, the responsibility of servicing Home Loan EMIs falls both on Mr A and Mrs B. To avoid any legal disputes, lenders generally ask all co-owners to serve as co-applicants. However, if a co-owner wants, they can refuse to be a co-applicant.
Individuals who wish to avail themselves of a Home Loan must meet their lender’s qualifying criteria. In other words, they must have a stable income, a stable job, a CIBIL score of 750 or above, etc. If an individual does not meet a lender’s qualifying criteria for a loan, their application gets rejected. In this case, to enhance their Home Loan eligibility and become eligible for a Home Loan, borrowers can consider adding a co-applicant with an excellent credit and income profile. Here are two things that people must know if they plan to serve as a co-applicant on someone’s Home Loan:
-
Co-applicants who are not co-owners do not have any legal right over the property against which the loan has been taken.
-
Co-applicants who are not co-owners cannot claim tax benefits available to Home Loan borrowers under various sections of the Income Tax Act.
Who is a Co-Borrower?
A co-borrower is a person who is as responsible for loan repayment as the original borrower. If one avails of a Home Loan and adds a co-borrower, it is the primary applicant who services the Home Loan EMIs. However, if for some reason, the primary applicant finds it difficult to pay their EMIs or in the case of the demise of the primary applicant, it becomes the responsibility of the co-borrower to pay the Home Loan EMIs. Not everyone can serve as a co-borrower; lending institutions have guidelines regarding who can serve as a co-borrower on a Home Loan. For instance, most lending institutions do not allow parents to co-borrow a loan with an unmarried daughter as this can lead to property-related disputes in the future. In general, most people choose to add their partner, child, or an immediate relative as a co-borrower.
If you are planning to accept to be a co-borrower on someone’s loan, here are a few things you must keep in mind:
-
Since you are a co-borrower, your credit and income profile will have an impact on the primary borrower’s ability to avail of a loan. If you have an excellent credit score and a stable job and income, the probability of the primary borrower availing of the loan on beneficial terms and conditions will increase too.
-
Co-borrowers are not necessarily always co-owners. However, co-borrowers who are also co-owners can claim tax benefits under Section 80C and Section 24b of the Income Tax Act and maximize their tax savings.
Who is a Co-Owner?
Who is a Co-owner? A co-owner is a person who has a legal share in a property. However, if they do not choose to become a co-borrower, they are not legally responsible for repaying the loan money. However, if an individual borrows money against a property and fails to repay it, they stand to lose the ownership of the property and in this case, a co-owner who is not even a co-borrower may have to come forward and help with loan repayment to protect the property in question. It is thus that if one is taking a Home Loan or a loan against property, it is quite likely that the lender will ask all co-owners to serve as co-borrowers on the loan. If co-owners do not wish to sign up as co-borrowers, they must at least provide it in writing that they do not have any objection against the primary applicant borrowing money as a loan. Lending institutions do this to ensure there are legal hassles involved at a later stage.
Who is a Co-Signer?
As mentioned previously in this article, an individual must meet their lender’s Home Loan eligibility criteria if they wish to avail themselves of a loan. If a person has a low credit score and if the lender feels the risk involved for them in lending money to the loan applicant is too high, they might ask the loan applicant to add a co-signer. A co-signer has no legal rights over the property. However, the co-signer is responsible for loan repayment in case of a loan default or if the primary applicant finds themselves unable to repay the loan money. Having a co-signer with excellent credit standing can help one avail of a loan at low-interest rates. It can also help a person avail of larger sanctions and request a loan tenure that works best for them.
Final Words
The article distinguishes between co-owner, co-borrower, co-applicant, and co-signer in loan applications. A co-owner shares ownership of the property, a co-borrower shares financial responsibility for the loan, a co-applicant applies jointly for the loan, and a co-signer guarantees repayment if the primary borrower defaults.
DISCLAIMER:
While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent errors or delays in updating the information. The material contained in this website and on associated web pages, is for reference and general information purposes, and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. Neither Bajaj Housing Finance Limited nor any of its agents/associates/affiliates shall be liable for any act or omission of the Users relying on the information contained on this website and on associated web pages. In case any inconsistencies are observed, please click on contact information.
Frequently Asked Questions
Yes, if the primary borrower defaults on loan repayment, the CIBIL score of the co-signer will come down too. It is, thus, that individuals must think carefully before choosing to be a co-signer or co-borrower and also keep track of payments if they decide to play these roles.
No, if you are a co-applicant but not a co-owner, you cannot claim Home Loan tax benefits.
If you are a co-signer and not a co-owner, you won’t have any legal right over the property against which the loan has been taken.
Trending Articles

home+loan Home Loan
[N][T][T][N][T]
Complete Guide to Securing a Attractive Interest on Home Loans2024-01-23 | 3 min

[N][T][T][N][T]
Top 3 Reasons to Buy a Home Before You Reach 302024-12-11 | 3 min

cibil Cibil
[N][T][T][N][T]
Pay Minimum Amount Due on Your Credit Cards Will Impact Your Credit Score2024-03-11 | 5 min

cibil Cibil
[N][T][T][N][T]
Importance of CIBIL Score for Achieving Business Goals2024-03-13 | 5 min

[N][T][T][N][T]
3 Ways to Reduce Your EMIs with a Home Loan Balance Transfer2024-05-08 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Calculate Your Home Loan Eligibility2025-03-05 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Top Benefits of Loan Against Property Over Collateral-free Loans2023-02-23 | 3 min

cibil Cibil
[N][T][T][N][T]
7 Tips to Help You Improve Your CIBIL Score2024-05-15 | 5 min

loan+against+property Loan Against Property
[N][T][T][N][T]
A Guide to Loan Against Property for Doctors2022-06-27 | 5 Min

home+loan Home Loan
[N][T][T][N][T]
5 Strategies to Manage High Home Loan EMIs Effectively2023-02-22 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Factors Determining Your Home Loan Eligibility2024-03-13 | 4 min

loan+against+property Loan Against Property
[N][T][T][N][T]
What Are the Eligibility Criteria for Obtaining a Loan Against Property?2023-03-28 | 4 min

[N][T][T][N][T]
Everything You Must Know About NRI Home Loans2024-02-16 | 3 min

tax Tax
[N][T][T][N][T]
How to Save Tax for Salary Above 30 Lakh?2023-08-07 | 6 min

loan+against+property Loan Against Property
[N][T][T][N][T]
6 Reasons Why Collateral Matters When Applying for a Loan Against Property2023-02-27 | 5 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Easy Ways to Pick the Right Loan Against Property Tenure2024-05-14 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Pay-off Your Debt with Bajaj Housing Finance Loan Against Property2024-02-14 | 5 min

[N][T][T][N][T]
5 Ways Home Loan Borrowers Can Lower their Home Loan EMI2023-01-04 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Tax Benefits: Is There a Limit on How Many Times You Can Claim?2025-04-22 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Stamp Duty and Property Registration Charges in Gujarat2025-04-11 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding the Fees and Charges on Your Loan Against Property2024-02-16 | 8 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Benefits of Loan Against Property EMI Calculator2024-12-03 | 3 min

home+loan Home Loan
[N][T][T][N][T]
All You Need to Know About Home Loans2023-01-19 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Should I Apply for a Pre-Approved Home Loan or an After Property Finalisation Loan?2024-03-15 | 5 min

home+loan Home Loan
[N][T][T][N][T]
3 Smart Tips for Refinancing Your Home Loan2024-12-03 | 3 min

[N][T][T][N][T]
NRI vs. Indian Resident Home Loans2025-03-13 | 2 min

[N][T][T][N][T]
Home Loan Overdraft Facility: Features and Benefits2025-03-19 | 3 min

[N][T][T][N][T]
Loan Against Property or A Home Loan: Know What You Need2024-06-11 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Refinancing: What, Why, and Things to Remember2024-06-17 | 5 Min

loan+against+property Loan Against Property
[N][T][T][N][T]
Common Mistakes You Must Avoid Making When Applying for a Loan Against Property2023-02-09 | 5 min

home+loan Home Loan
[N][T][T][N][T]
How to Pick the Best Home Loan Tenure that Suits Your Budget2023-06-29 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan EMI Calculator Benefits and It’s Features2024-02-21 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Making Financial Planning Easy with a Home Loan EMI Calculator2023-09-06 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Everything You Wanted to Know About Loan Against Property2023-12-16 | 5 Min

tax Tax
[N][T][T][N][T]
Top 5 Tax Benefits and Other Advantages of a Joint Home Loan2024-07-10 | 8 min

[N][T][T][N][T]
6 Smart Tips to Increase Your Home Loan Eligibility2024-06-27 | 4 min

cibil Cibil
[N][T][T][N][T]
High CIBIL Score Helps Low-Interest Rate Loans2024-06-10 | 5 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Top Benefits of a Loan Against Property Over Collateral-Free Loans2024-01-09 | 4 min

home+loan Home Loan
[N][T][T][N][T]
All About Home Loan Balance Transfers2024-06-04 | 4 mins

home+loan Home Loan
[N][T][T][N][T]
Common Myths About Home Loans: All You Need to Know2024-04-08 | 5 min

[N][T][T][N][T]
Loan Against Property for Doctors: An Essential Checklist2024-05-07 | 2 min

cibil Cibil
[N][T][T][N][T]
Does CIBIL Score Affect Loan Against Property Eligibility?2023-02-15 | 7 min

home+loan Home Loan
[N][T][T][N][T]
How Can NRIs Avail of Home Loans in India2025-03-17 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Step-by-Step Process How to Apply for a Loan Against Property2024-03-05 | 4 Min

home+loan Home Loan
[N][T][T][N][T]
Tips to Get Home Loan with Minimum Down Payment in India2023-07-11 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Understanding EMI: Full Form and Calculation Methods2025-02-24 | 3 min

home+loan Home Loan
[N][T][T][N][T]
A Step-by-Step Guide to Home Loan Balance Transfer Application2024-07-09 | 6 min

tax Tax
[N][T][T][N][T]
Should You Get a Home Loan to Save Your Taxes?2024-02-01 | 3 min

[N][T][T][N][T]
NRI Home Loans: 5 Things to Keep in Mind Before Applying2024-02-15 | 4 min

cibil Cibil
[N][T][T][N][T]
What is CIBIL? Understand How It Works and Its Importance2024-01-31 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Why is the Interest Component Higher in the Initial EMIs of a Home Loan2025-03-07 | 6 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Choose the Right Lender for a Loan Against Property2024-12-23 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Pre-EMI or Full EMI: Understanding Home Loan Repayment Options2025-01-16 |

loan+against+property Loan Against Property
[N][T][T][N][T]
Things You Need to Know Before Applying for a Loan Against Property2024-12-02 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding All the Charges on Your Loan Against Property2024-12-27 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Short vs. Long Loan Against Property Tenure - Which Is Better?2024-05-07 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Factors to Consider Before Applying for a Home Construction Loan2022-12-02 | 5 min

home+loan Home Loan
[N][T][T][N][T]
What Is Home Loan Eligibility and How Is It Calculated2024-07-11 | 6 min

cibil Cibil
[N][T][T][N][T]
Everything You Should Know About Your CIBIL Score2024-02-09 | 7 min

[N][T][T][N][T]
Role of Eligibility Calculator Before Availing a Home Loan2025-04-23 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Stamp Duty and Property Registration Charges in Kerala: A Comprehensive Guide2025-04-11 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
How to Use Loan Against Property EMI Calculator2025-04-23 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Loan Against Property for Business: What You Should Know2025-04-22 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Can You Convert a Loan Against Property into a Home Loan? Here’s What You Need to Know2025-04-22 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Key Documents to Check for a Safe and Transparent Property Transaction2025-04-22 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
What to Know Before Availing of a Loan Against Property2025-04-22 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
What Happens When You Pay Off Your Mortgage?2025-04-22 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
How to Pay MCD Property Tax in Delhi2025-04-21 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Tax Benefits on Mortgage Loans: What You Need to Know2025-04-21 | 3 min

home+loan Home Loan
[N][T][T][N][T]
How to Apply for GPRA Accommodation via eSampada and eAwas2025-04-21 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Understanding the SVAMITVA Scheme: A New Era of Property Ownership in Rural India2025-04-21 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Why Property is More Than Just an Asset: 4 Ways It Can Power Your Finances2025-04-21 | 2 min

[N][T][T][N][T]
Home Loan Insurance Benefits for New Home Buyers2025-04-21 | 6 min

home+loan Home Loan
[N][T][T][N][T]
MPIGR Madhya Pradesh: A Guide to Property Registration and SAMPADA Services2025-04-14 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Consider These Factors Before Foreclosing Your Home Loan2024-04-16 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Top Things to Keep Track of While Doing a Home Loan Balance Transfer2022-12-18 | 7 min

home+loan Home Loan
[N][T][T][N][T]
Smart Things to Consider Before You Apply for a Home Loan2022-12-14 | 5 min

tax Tax
[N][T][T][N][T]
How Much Tax Can be Saved Under Sections 80C, 80D, and 80G?2024-05-15 | 5 min

tax Tax
[N][T][T][N][T]
Tax Benefits on Home Loans for Self-Employed Individuals: What You Need to Know2024-06-07 | 4 min

cibil Cibil
[N][T][T][N][T]
How to Increase Your CIBIL Score Above 800: 7 Proven Methods2023-01-24 | 4 min

home+loan Home Loan
[N][T][T][N][T]
10 Smart Steps for Effective Home Loan Management2024-02-16 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Should You Take a Home Loan Even If You Have Enough Money to Buy a House?2024-01-30 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Section 80EE: Claim Deductions on the Home Loan Interest Paid2024-04-25 | 6 min

cibil Cibil
[N][T][T][N][T]
How can I Remove Loan Inquiry from CIBIL Credit Report2024-01-22 | 5 min

[N][T][T][N][T]
Tips to Manage Loan Against Property Repayments Efficiently2024-02-21 | 3 min

home+loan Home Loan
[N][T][T][N][T]
Differences Between Fixed and Floating Interest Rates2024-05-15 | 2 min

home+loan Home Loan
[N][T][T][N][T]
What Do You Need to Know About Home Loan Foreclosure?2023-03-23 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Monthly Reducing Balance Method for Home Loan Interest2025-02-25 | 3 min

[N][T][T][N][T]
Everything You Need to Know About Home Loan Part-Prepayment2024-12-18 | 5 min

home+loan Home Loan
[N][T][T][N][T]
What is the Ideal Age to Buy a House?2025-03-19 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Check Housing Loan Eligibility with Home Loan Eligibility Calculator2023-07-12 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Everything You Need to Know About Top-up Loans on a Home Loan2024-04-09 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Get a Home Loan Without Visiting Branch: A Step-by-Step Guide2024-03-20 | 4 min

cibil Cibil
[N][T][T][N][T]
Impact of Late Payment on CIBIL Score?2024-03-08 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan Balance Transfer: Benefits, Eligibility, and More2024-05-15 | 3 Min

[N][T][T][N][T]
7 Benefits of Taking a Home Loan in India2024-06-19 | 3 min

home+loan Home Loan
[N][T][T][N][T]
An Essential Guide to Refinancing a Home Loan2024-04-22 | 5 Min

cibil Cibil
[N][T][T][N][T]
What Factors Do Not Affect Credit Scores?2024-02-28 | 7 min

home+loan Home Loan
[N][T][T][N][T]
Tips to Secure Quick Home Loan Approval2025-03-03 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Loan Against Residential Property: A Smart Financing Solution2025-03-10 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Loan Against Agricultural Land: Unlock the Value of Your Property2025-03-07 | 6 min

cibil Cibil
[N][T][T][N][T]
Know How Mortgage Loan Affect Your CIBIL Score2024-02-05 | 5 Min

loan+against+property Loan Against Property
[N][T][T][N][T]
Understanding the Fees and Charges on Your Loan Against Property2024-04-10 | 6 min

cibil Cibil
[N][T][T][N][T]
What are the Types CIBIL Errors & How to Correct Them?2023-11-22 | 6 min

home+loan Home Loan
[N][T][T][N][T]
Home Loans for Salaried Employees: Eligibility, Documents, and Application Process2025-03-18 | 3 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Property Mortgage Loan: A Smart Financing Option for Businesses2025-03-10 | 3 min

[N][T][T][N][T]
Loan Against a Shop- Commercial Property Loans2024-12-18 | 2 min

home+loan Home Loan
[N][T][T][N][T]
Benefits of a Home Loan2023-02-20 | 4 min

loan+against+property Loan Against Property
[N][T][T][N][T]
3 Different Loan Against Property Types You Should Know About2024-02-13 | 5 Min

[N][T][T][N][T]
Home Loan for Pensioners: Eligibility and Benefits2025-03-11 | 3 min

home+loan Home Loan
[N][T][T][N][T]
5 Great Ways Women Can Benefit from Taking a Housing Loan2024-01-16 | 5 min

home+loan Home Loan
[N][T][T][N][T]
Home Loan for Self-Employed Individuals2025-03-03 | 2 min

loan+against+property Loan Against Property
[N][T][T][N][T]
Why Professional Loans Against Property Are Financially Beneficial?2023-03-03 | 5 min

cibil Cibil
[N][T][T][N][T]
Reasons Why Your CIBIL Score Is Going Down2024-04-10 | 4 min

home+loan Home Loan
[N][T][T][N][T]
Reasons Why a Housing Loan Application May Be Rejected2024-02-14 | 3 min

cibil Cibil
[N][T][T][N][T]
Five Reasons Why a Bad Credit Score Could Lead to Loan Rejection2024-01-22 | 5 min

cibil Cibil
[N][T][T][N][T]
Top 10 Reasons For Low CIBIL Score & How To Improve It2024-03-01 | 5 min

[N][T][T][N][T]
What is the Purpose of CIBIL Score?