New Delhi, May 6 -- Banks have various eligibility criteria for loans. If a loan applicant doesn't meet one of the eligibility criteria, the bank may ask the applicant to get a co-applicant instead of rejecting the loan application.

In this article, we will understand why a borrower may get a co-applicant and the impact of a joint loan on the credit score and profile of joint applicants.

Some reasons why a borrower may need to bring in a co-applicant include the following.

Low credit score: Banks usually consider a credit score of 750 or above good for approving loan applications, provided the other eligibility criteria are met. Some banks consider loan applications with a credit score lower than 750.

If a borrower's credit score is l...