Applying for a joint personal loan? Here's what you need to know

Couple sitting at computer applying for joint personal loan.

Sharing finances is a milestone some relationships decide is right for them. Pooling money can help provide accountability, with many Aussies splitting financial products like bank accounts, credit cards and home loans. So, why not share a joint personal loan?

What is a joint personal loan? 

As the name suggests, a ‘joint personal loan’ is shared between two people. These ‘co-borrowers’ apply and repay the loan together. 

Depending on the lender, these loans can be used to cover a range of things from home renos and wedding costs to the purchase of a new set of wheels. While commonly people apply for these loans with their partners or spouses, in some cases you can also apply with a parent, sibling, family member or even a friend. 

However, there are some benefits and risks to taking out a joint personal loan that are worth being aware of before you apply. It’s also important to keep in mind that each lender may have different eligibility criteria, so it’s crucial that both applicants meet what’s required. 

What are the benefits of a joint personal loan?

  • You may have a greater chance of approval: The financial history and credit rating of both applicants is considered for the joint loan. Meaning the lender assesses both co-applicants’ details to determine whether together you are fit to pay back the loan. 
  • You may be able to borrow more: In the same way, because both applicants' financial situations (like income and credit history) are taken into account, you may be eligible to borrow more than if you applied alone. 
  • You may be able to consolidate a bigger amount of debt: Debt consolidation loans can come in the form of joint loans. So if you and your co-borrower have debt to clear this may be a way to do it. 
  • Cover the cost of a shared asset: If you are covering the cost of a shared big purchase, a joint loan can be a good way to help both parties make regular repayments and stay on track to paying off the debt.  

What are the risks of a joint personal loan? 

  • Relying on another person when it comes to repayments: The truth is, by entering into a loan with another person you are sharing responsibility and thus putting trust in someone to do half the job. The bad side of joint loans is if things go pear-shaped and the other person doesn’t pay down their share, which may mean you end up liable for the entire payment or even face legal action if the loan isn’t paid.   
  • You may over-borrow: Just because you can borrow more (in the eyes of your lender) doesn’t mean you should. Don’t just enter a joint loan for the sake of being able to get a larger sum if you and your co-applicant will struggle to pay it off. 
  • Your credit rating may worsen: Where you or your co-borrower miss repayments or default on your loan, it will negatively impact both your credit scores. As mentioned above, you are trusting someone else to make repayments to help keep both yours and their credit rating healthy.  
  • It may impact the relationship you have with your co-applicant: It’s no secret that money can ruin relationships, and joint personal loans are no exception. Before entering into the loan, ensure you have had the right conversations with your co-applicant and are confident you both understand the joint responsibility that comes with it. Also consider the financial situation of the person you may be entering this loan with - think of things like job security, financial history and even their credit rating.

Joint personal loan FAQs

Do all lenders offer joint loans?

No, it varies from lender to lender. 

Who can I apply for a joint personal loan with?

You can apply for a joint personal loan with a partner, spouse, parent, sibling, relative or even a friend. Just remember, it’s a shared commitment so ensure you know the financial background of the person you’re applying with. 

How many people can be on my joint personal loan application?

A joint loan refers to a type of personal loan where two people are on the application rather than just one. 

Can I apply for a joint loan online?

Yes, there are many online loan options when it comes to joint personal loans, from more traditional banks to online-only lenders. 

How do I apply for a joint personal loan?

To apply for a joint personal loan, you’ll need the personal, financial and employment information from both you and your co-applicant. You can apply for a joint personal loan either in-branch, over the phone or online, depending on your chosen lender. 

Can I get a joint personal loan with bad credit?

This depends on your lender as well as the credit history of your co-applicant. If your co-applicant has a better credit rating than you, this may boost your chance of getting approved for the loan despite your bad credit rating. However, this is not guaranteed. 

Are joint loans easier to get?

Like a regular personal loan, you still need to go through the application and approval process to get a joint personal loan. As mentioned above, you may increase your chances of getting approved and borrowing more by opting to apply with another person rather than alone. 

Not sure if a joint loan is quite right but want to compare some personal loan options right now? Check out these picks below!

Compare personal loans - last updated 16 April 2024

Search promoted personal loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

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  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
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    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

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  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    14.95% p.a.to 27.95% p.a.
    29.30% p.a.to 42.8% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $5,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 24-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.

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  • Debt Consolidation Loan

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 19.39% p.a.based on $30,000
    over 5 years

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    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

^See information about the Mozo Experts Choice Personal Loan Awards

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