Joint personal loans: what you need to know

A joint personal loan has many benefits over an individual application, but there are risks to consider as well. We’ve broken down what you need to know in this quick guide.


A joint personal loan is just like a regular personal loan, but two (or more) people are responsible for the debt.

Usually, this ‘co-borrower’ will be a husband, wife or partner, a close friend or a family member.

All of the co-borrowers are equally responsible for the entirety of the debt. This means that if one co-borrower can’t meet their side of the repayments, the other co-borrower(s) have to make up the difference.



One of the most common joint personal loans is a mortgage, where a couple owns the home together and pays off the loan together. It isn’t the only time a joint loan is suitable though. Sometimes friends want to buy a car or a boat together, parents and children go halves on a wedding loan, or a couple takes out a joint debt consolidation loan.

Taking out a joint personal loan for any purpose comes with a lot of positives compared to making an individual application, including:

  • You can borrow more together than alone.
  • Your application is more likely to be approved.

Remember that all co-borrowers need to meet the loan criteria. If someone has a low income, a poor borrowing history or a lot of existing debt, it may be more difficult for your lender to approve a joint personal loan.

If your partner, friend, family member or other potential co-borrower is in this situation, we recommend taking a look through either our guide to credit scores to see if they can fix it, or reading up on our complete guide to personal loans.



There is a lot of responsibility that comes with a joint personal loan. If one person is unable to make their part of the repayments, the other co-borrower(s) have to make up the difference.

This means it’s very important to carefully consider who you are co-borrowing with. Do you trust them to be able to make the repayments? Do they have good financial habits? Do they have a stable job with consistent income?

Sometimes, life just happens, and you or your co-borrower(s) could find yourselves unable to make repayments through no fault of your own. Your lender should work with you to manage this, but it’s best to start with the right co-borrower just in case bad luck hits.



Ready to begin a joint personal loan application? Get started with Avanti Finance.

This article is solely for information purposes and is not intended to be financial advice. If you need help, please contact Avanti Finance or your financial adviser. Neither Avanti Finance nor any person involved in this article accepts any liability for any loss or damage whatsoever which may directly or indirectly result from any information, representation or omission, whether negligent or otherwise, contained in this publication. References to third-party websites are provided for your convenience only. Avanti Finance accepts no responsibility for the availability or content of such websites.

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