Updated: Oct 4, 2020

Most of the bank and finance companies, require a main applicant and a co-applicant at the time of loan application. Let us understand the different scenarios which are usually available for individual applicants applying for home loan.

Scenario 1-The property being purchased is owned by more than one person.

Let’s say both husband and wife are going to be joint owners of the property. In this situation both of them need to be the joint applicant to the loan which means they need to sign the application form and also provide the KYC(Know Your Customer) docs. The loan can’t be granted or sanctioned till the time both the owners-husband & wife provide their consent in writing and provide the necessary documents to the bank or financial institution

Scenario 2- The property being purchased in a single name only.

Continuing with the above example, if only either wife or husband is purchasing the property in his/her name, then only, he/she needs to be main applicant to the loan. Spouse (husband or wife) can either join as co-applicant or guarantor to the loan.Banks and finance companies usually insist on adding husband or wife as co-applicant or guarantor to the loan, however in certain situations exceptions can be taken and loan can be sanctioned on single name as well. It is important to note that such discretion rests solely with the bank or financial institution which is providing the loan.

For unmarried applicants, parents(father or mother) can join as co-applicant/guarantor to the loan.