Joint Loans: Looking for a Joint Loan?

Andrew Bell

Last updated: March 5, 2021

• 6 minute read

6 minute read

Why joint loans?

Those aiming to boost their eligibility when looking for finance may want to look into joint loans! “What are they?” You may ask. Well, they are a specific loan type that allows for two or more people to submit an application together for the same loan. If approved, your co-borrowers and yourself will share both the repayments and responsibility of managing the commitment. In some instances, joint loans can greatly increase your chances of approval. So, whether you’re looking to finance a car, home or even a holiday; a joint loan could be the option you were looking for. For general information on fast loans, check out our main page.

Nifty and Joint Loans

With that being said, we would like to clear the air and state that we do not offer joint loans… yet. As a lender, Nifty recognises the ever-growing need for alternative finance options and we also understand the different demands of our applicants; which is why we are looking to expand into the joint loan space. In the near future, you can look to have all of your small, medium and large joint finance needs covered by Nifty! That being said, Nifty already offers an array of loan products and even if you need a joint loan, we may still have something that will suit your current needs! Now, before we go on about ourselves, let’s have a deeper look at joint loans.

Joint loans, anything and everything

As mentioned previously, joint loans are unique in the fact that multiple people can apply for the same loan; this can be useful for those struggling to find finance on their own. We should point out that there are some restrictions on this, as different lenders have different criteria for who you can apply with and if you can apply jointly at all. Some lenders may only allow you to apply with a spouse or close relative; others could expand this to include close friends. This can work in your favour though, as the last thing you want is your co-borrower bailing on you and having someone close you co-borrowing provides some security. Another thing to remember is that both you and your co-borrower need to meet the lending criteria, one person often won’t cut it! Don’t know the criteria? Well, check with the lender before applying. No point submitting an application for nothing!

What sort of joint loans are available?

You may be wondering what type of loans you can apply for with a co-borrower. Well, we have listed some common joint loans bellow:

• Home Loans;
• Car Loans;
• Investment Loans;
• Medical Loans;
• Renovation Loans;
• Debt Consolidation Loans.

And the list goes on! With that being said, there really are no ‘set-in-stone’ rules for what a joint loan can be used for. Though, as lenders may have their own restrictions, it is always useful to double-check before shooting through an application. But before you apply, you should always consider the pros and cons.

Joint loans: Pros

Why don’t we go over some of those pros of joint loans right now!

Increased chance of approval

Due to both the increased borrowing capacity and reduced risk for the lender, getting approved for a joint loan can be much easier than flying it solo in some circumstances. This is especially true if you have a lower or semi inconsistent income. As the lender will take into account multiple applicant’s, income inconsistencies can be balanced out if your co-borrower has a reliable source of income or vice-versa. 

Approved for larger loans

Again, due to the greater borrowing capacity of multiple applicant’s, you may find that you could be considered for a larger loan. This could mean you could look at that house you always wanted or that car that was just out of reach. 

Shared commitment

As with everything in life, loans are taken at a risk. This is due to the many uncertainties that lie in the future. With this in mind, joint loans are uniquely positioned to mitigate at least some of this uncertainty. This mitigation comes down to the fact that separate earners are responsible for the loan. For example, let’s say, for whatever reason, you lose your employment and are left without an income. With most loans, this would mean entering a hardship variation and placing the payments on hold, or the loan going into default, potentially damaging your credit rating. With a joint loan, as the commitment is shared, the consequences for being unable to pay will be mitigated by your co-borrower. Whether they pick up the full repayment or continue to pay their share, it is better that something is being paid rather than nothing at all. 

Joint Loans: Cons

At this point, you may be thinking that joint loans offer uncompromised benefits. Though, there is a catch to this sentiment. As much as they offer a benefit by allowing you to split the commitment with a co-borrower, this can also work as a double-edged sword.

Rely on someone else

As much as having a co-borrower can be a benefit, it can quickly turn into a liability if they are left unable to pay. Whether through unforeseen circumstances or simply due to negligence, you will be just as accountable for missed repayments even if you held up your end of the bargain.

Liable for the entire loan

Following this vein, if your co-borrower is unable to pay and you are unable to pick up the extra cost of their repayments, you can run the risk of being legally liable for a debt you may still be paying. Obviously, in this case, you should always contact your lender to request a hardship variation. But in the worst-case scenario, if you are left in this position, you may need to seek outside legal advice to ensure you remain protected or reduce the impacts on your own financial health.

As a takeaway, if you do decide to enter into a joint loan agreement, it is imperative that appropriate checks are made with your co-borrower to ensure they sit on a solid foundation to support the loan into the future and that they have the full intention to repay the debt. 

What about Nifty Personal Loans?

As we’ve already stated that we do not offer joint loans at the moment, though, we would like to present a range of other products you could still be interested in. These include short term personal loans for individual Australians that start from $300 and go up to $5,000. The repayment terms for these products vary depending on the loan amount, though, they generally fall between 6 and 24 months. Depending on your situation, we can offer either secured or unsecured loans. For greater comparison, the table below outlines the specifics for each loan product. 

Want to know more?

So, if you’re after a Nifty joint loan… Watch this space!  There are a plethora of other products that we can potentially offer you. If you’re interested in our other loan products, or just have a question, feel free to use our contact page.

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