Joint Personal Loan? Here's How to Get Approved (2026)

Are you considering taking out a loan with someone else to help manage a significant expense? Whether it's to fund a dream holiday, consolidate debt, or cover unexpected costs, a joint personal loan can be a practical solution. But how does it work, and is it the right choice for you? Understanding the ins and outs of joint personal loans can not only save you money but also prevent potential financial hiccups down the road.

Understanding Joint Personal Loans

A joint personal loan involves two or more people borrowing money together from a lender. This type of loan is often taken by partners, friends, or family members, who wish to share both the debt and the responsibility of repayment. Joint loans can offer higher borrowing limits and better interest rates compared to individual loans because the lender considers the combined income and creditworthiness of all applicants.

For example, if two friends decide to take out a joint personal loan to fund a startup, both parties are equally responsible for the debt. This means that if one person fails to make their share of the repayments, the other is still liable for the entire loan amount.

Rates, Requirements, and Options

In 2026, interest rates for personal loans in Australia generally range from 6.49% to 12%, depending on various factors including credit history, income, and the amount borrowed. Joint personal loans might offer slightly lower rates due to the combined financial strength of the applicants.

Here's a comparison of typical rates and features available for joint personal loans:

Lender	Interest Rate	Loan Features
Bank A	6.49%	Flexible repayment options, no early repayment fees
Credit Union B	7.5%	Low setup fees, online account management
Online Lender C	9.2%	Fast approval, competitive rates for good credit

Eligibility criteria for joint personal loans typically include:

• Both applicants must be over 18 years of age.
• Australian residents with valid ID.
• Stable income and employment history.
• Acceptable credit scores for both parties.

It's important to remember that each lender will have its unique requirements, so checking with a mortgage broker like Esteb and Co, who has access to over 83 lenders, can provide you with tailored options that suit your circumstances.

Steps to Secure a Joint Personal Loan

Here are the steps to take if you're considering applying for a joint personal loan:

1. Assess Financial Compatibility: Discuss financial goals and habits with your potential co-borrower to ensure alignment.
2. Check Your Credit Scores: Obtain credit reports for both applicants to identify any potential issues that might affect your application.
3. Calculate Your Budget: Determine how much you can afford to borrow and repay each month.
4. Compare Lenders: Use a mortgage broker like Esteb and Co to compare offers from multiple lenders quickly.
5. Prepare Documentation: Gather necessary documents such as ID, proof of income, and employment details.
6. Submit Your Application: Complete the application process with your chosen lender, providing all required information.
7. Review Loan Agreement: Carefully read the loan terms before signing to ensure you understand all responsibilities and conditions.

Tips and Considerations

Before committing to a joint personal loan, consider the following expert tips:

• Open Communication: Maintain honest and open discussions with your co-borrower to avoid misunderstandings.
• Legal Advice: Consider consulting a legal advisor to draft an agreement outlining each party's responsibilities.
• Emergency Plan: Have a plan in place for covering payments if one party faces financial difficulties.
• Impact on Credit: Understand that late payments or defaults will affect both parties' credit scores.

Frequently Asked Questions

Below are some common questions about joint personal loans:

• Can we apply for a joint personal loan with different lenders?
  No, a joint personal loan application must be submitted to a single lender.
• What happens if my co-borrower can't pay?
  You will be responsible for the entire loan repayment, affecting your credit score if payments are missed.
• Can we use a joint personal loan for any purpose?
  Generally, yes, but it's best to check with your lender for any restrictions.
• Do we both need to have a good credit score?
  Ideally, yes, as lenders assess the creditworthiness of both applicants.
• Is it possible to leave a joint loan?
  Exiting a joint loan is complex and usually requires refinancing or paying off the loan entirely.
• Can more than two people apply for a joint personal loan?
  Some lenders may allow more than two applicants, but it's not common. Check with your lender for their specific policies.

Whether a joint personal loan is right for you depends on your unique situation. Always weigh the benefits against potential risks and consult with experts, like those at Esteb and Co, to find the most suitable option for your needs.