In personal finance, co-applicant and joint applicant are so important terms. But when we take loan, it will become so confusing both debtor and creditor. Whether you are taking personal loan or home loan or car loan with you and your friend together, you have to differentiate both term and keep yourself in one them.
Following are the main differences of both personal finance terms :
1. Definition
Definition of Co-Applicant
Co-applicant are the business partner who apply for loan together. Creditor will make one of them as primary applicant and other members will be co-applicant. But all co-applicant will responsible for repaying the loan when they get it together because on the application of request of loan, all will sign together and will give guarantee to repay the loan.
Definition of Joint-Applicant
Joint-applicant is a person who join in debt dealing. It is just admission of a new partner. For example, you and your wife has taken the loan of Rs. 20,00,000 through co-signing the debt deal. You son is also interested in your business, he joins in your business and in your taken debt deal. So, he will apply the join application and will be responsible for repaying the debt which is taken by co-applicant.
Determining whether you want to be a co-applicant or joint applicant on a car loan can be confusing, because different government entities may use the terms interchangeably. However, these are basically the same thing. What you want to watch out for is if the creditor calls you a co-signer. Have a question? Get an answer from a personal finance professional now!
2. Minor
Co-applicant never be minor for applying loan.
Joint-applicant may be minor because he is co-owner of the property which is bought by loan.
3. Relationship
For applying loan as co-applicant, there is more chance of getting loan because their taxable income will merge for giving loan. But co-applicant must be in blood relation. It may be brothers and sisters, husband and wife, father and son or daughters.
Joint-applicants need not be in blood relation.
Following are the main differences of both personal finance terms :
1. Definition
Definition of Co-Applicant
Co-applicant are the business partner who apply for loan together. Creditor will make one of them as primary applicant and other members will be co-applicant. But all co-applicant will responsible for repaying the loan when they get it together because on the application of request of loan, all will sign together and will give guarantee to repay the loan.
Definition of Joint-Applicant
Joint-applicant is a person who join in debt dealing. It is just admission of a new partner. For example, you and your wife has taken the loan of Rs. 20,00,000 through co-signing the debt deal. You son is also interested in your business, he joins in your business and in your taken debt deal. So, he will apply the join application and will be responsible for repaying the debt which is taken by co-applicant.
Determining whether you want to be a co-applicant or joint applicant on a car loan can be confusing, because different government entities may use the terms interchangeably. However, these are basically the same thing. What you want to watch out for is if the creditor calls you a co-signer. Have a question? Get an answer from a personal finance professional now!
2. Minor
Co-applicant never be minor for applying loan.
Joint-applicant may be minor because he is co-owner of the property which is bought by loan.
3. Relationship
For applying loan as co-applicant, there is more chance of getting loan because their taxable income will merge for giving loan. But co-applicant must be in blood relation. It may be brothers and sisters, husband and wife, father and son or daughters.
Joint-applicants need not be in blood relation.
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