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Things to Know About Joint Personal Loans

Joint loans come with plenty of pros and cons – the tricky part is figuring out if it’s the right option for you.

What is a joint loan?

A joint loan is exactly what it sounds like – a loan taken out by two people who share a joint obligation to repay it.

Who is eligible for a joint loan?

We still look at all the same criteria to assess your eligibility – annual salary, other liabilities expenses and credit history, to name a few. However, we combine all of this information to determine whether both parties can comfortably cover the cost of the loan without running the risk of falling behind.

Why take out a joint personal loan?

A problem shared is a problem halved. In theory, the same applies to a joint personal loan. It allows you and your co-borrow – your partner, a family member or close friend – to contribute equally to paying off a loan. A joint loan can be a great way to clearly define your obligations and ‘split the bill’ with your co-borrower.

What can you take out a joint loan for?

Almost anything. Joint loans are simply a way to split the repayments between two people rather than one. It’s not uncommon for wedding loans to be taken out on a joint basis. It’s an effective way to pay off the cost of your big day over a time period that suits you. 

You might also consider taking out a joint travel loan – be it for visiting family or taking an extended overseas trip. Splitting the cost down the middle and knowing what your repayments will be can help you manage your cash flow and prevent you from having to fork out a huge sum upfront.

What are some of the benefits of a joint personal loan?

Two applicants usually equal two income streams. A lender may see this as safer than just one person going in on their own. Having two people to cover the repayments may increase your borrowing capacity, giving you access to a higher amount of credit. That quick DIY may turn into the full-blown home renovation you’ve wanted to do all along.

Applying for a joint loan may also increase your chances of approval. This can be particularly helpful for part-time workers, sole traders and students. Having someone else on the application may bolster your chances of being approved for credit.

Your credit score also plays a significant role in your assessing your eligibility for a loan. If you have a ‘thin’ credit file – which is common for young people who have never had a credit card or personal loan before – you may need the backing of a co-borrow to get you over the line.

What are the risks of getting a joint personal loan?

Life can get messy. We hope this doesn’t happen, but if things go pear-shaped, you and your co-borrower are still tied to your repayment obligations. If you take out a joint loan with your pattern and you break up, or with a family member and you fall out, you still need to pay back the money you borrowed. 

If your co-borrower decides to stop paying their share or can no longer afford it, you have to pick up the slack. Until the day that your loan balance drops to zero, you are both bound to the loan agreement.


If you or your co-borrower are struggling to make repayments, we have a dedicated team that can assist borrowers experiencing financial hardship.

What factors can affect a joint loan application?

Your income – the amount you earn does not solely determine the amount of money you can borrow, but it is part of the equation. Having two income streams assessed as part of the loan application may give you access to higher amounts of credit and more flexible loan terms.

Your cash flow – we will need to assess whether you and your co-borrower have enough surplus income to service the loan.

Your credit scores – this gives us an indication of your current financial position, your history with repaying credit and your overall likeliness of repaying the loan.

Your relationship with your co-borrower – you may want to consider what kind of relationship you have with the co-borrower over time and that the purpose of the loan provides mutual benefit.

What documents do I need to apply for a joint loan?

Just like a traditional personal loan, you’ll need to start with the basics:

  • Two forms of I.D. E.g. passport, drivers licence or Medicare card

  • Last 90 days bank statements. You can either email these to us or provide your online banking details via a secure, encrypted portal that allows us to obtain the information directly from your bank.

  • Payslips if required so we can assess your ability to service the loan.

If we need anything else, we’ll let you know.

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Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Services does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.

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