Personal Loan? Here's How Two Can Apply (2026)

Are you considering applying for a personal loan but feel overwhelmed by the process or anxious about your chances of approval? Partnering with someone else might just be the solution you need. By applying for a personal loan as a pair, you can potentially boost your borrowing power and increase your chances of approval. But how exactly does this work, and what do you need to know?

Understanding Applying for a Personal Loan with a Partner

Applying for a personal loan with two people—often referred to as a joint personal loan—allows you to share the financial responsibility and benefits with another individual. This could be a spouse, a partner, a family member, or even a trusted friend. The key advantage is that it combines both applicants' incomes and credit histories, which can be particularly helpful if one party has a lower credit score or limited borrowing history.

In 2026, the Australian financial landscape offers numerous opportunities for joint applications, especially as lenders look to reduce their risk by considering the combined financial profiles of applicants. This can be especially beneficial if one applicant has a strong credit history, as it may offset any concerns about the second applicant's financial standing.

Interest Rates, Requirements, and Options

When applying for a joint personal loan, it's important to understand the specifics of interest rates and eligibility requirements. The interest rates for personal loans in 2026 typically range from 6.49% to 12%, depending on various factors such as credit history, loan amount, and the lender's assessment of risk.

Eligibility criteria can be stringent, including factors like:

• Proof of income from both applicants
• Stable employment history
• Australian citizenship or permanent residency
• A good or excellent credit score for at least one applicant

When choosing a lender, you'll want to compare options. Here's a quick comparison of what to look for:

At Esteb and Co, with access to over 83 lenders, we can help identify the best options tailored to your needs, ensuring you receive competitive rates and favourable terms.

Steps to Apply for a Joint Personal Loan

Applying for a joint personal loan involves several key steps to ensure a smooth process and successful application:

1. Assess Financial Standing: Both applicants should review their credit scores, income levels, and existing debts. Understanding your financial health is crucial.
2. Research Lenders: Look into different lenders and their requirements. Esteb and Co can assist in this process by leveraging our extensive lender panel.
3. Gather Documentation: Collect necessary documents such as proof of income, identification, and bank statements for both applicants.
4. Submit Application: Apply through your chosen lender, providing all required information for both parties.
5. Review Loan Agreement: Upon approval, thoroughly review the loan terms and conditions before accepting.
6. Sign and Finalise: Both applicants must agree to and sign the loan agreement to finalise the process.

Expert Tips and Considerations

When applying for a joint personal loan, there are several factors to keep in mind:

• Communication is Key: Ensure both parties are clear about their responsibilities and repayment obligations to avoid misunderstandings.
• Understand the Risks: Both applicants are equally liable for the loan, meaning if one party defaults, the other is responsible for the entire amount.
• Plan for Repayments: Set up a clear repayment plan that fits within both parties' budgets to avoid financial strain.
• Consider Loan Purpose: Clearly define the loan’s purpose and ensure it aligns with both applicants’ financial goals.
• Seek Professional Advice: Consulting with a mortgage broker like Esteb and Co can provide insights and help navigate the complexities of joint applications.

Frequently Asked Questions

Here are some common questions about applying for a personal loan with two people:

1. Can two people with different credit scores apply for a joint loan? Yes, but the lender will consider both scores, which may affect the interest rate and approval odds.
2. Is it better to apply for a joint loan if one person has a much higher income? Potentially, as the higher income can improve your borrowing capacity and loan eligibility.
3. What happens if one person cannot make their share of the repayments? Both parties are equally responsible for the loan, so the other person must cover the shortfall to avoid default.
4. Can a joint loan be used for debt consolidation? Yes, joint loans can be used for various purposes, including consolidating existing debts.
5. How does a joint loan affect credit scores? Both applicants’ credit scores may be impacted by the loan, positively if managed well, or negatively if repayments are missed.
6. Can I apply for a joint loan with a non-related individual? Yes, as long as both parties meet the lender’s requirements and agree to the loan terms.
7. What is the maximum amount two people can borrow together? This depends on the lender, but a joint application can often increase your borrowing limit compared to a single applicant.