If you are planning to take an education loan for an MBA or postgraduate (PG) course in India, you may require a co-borrower to support your loan application. A co-borrower is an individual who shares the responsibility of loan repayment with you. Here are the commonly accepted co-borrower options:
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Parent(s):
Parents are often the most common and preferred choice for co-borrowers. They provide a strong financial backing and are typically considered reliable and trustworthy by lenders.
Guardian(s):
If your parents are not available or unable to act as co-borrowers, a legal guardian, such as an uncle, aunt, or grandparent, may be considered. The guardian should have a stable income and meet the lender's eligibility criteria.
Sibling(s):
In certain cases, siblings who are working professionals with a regular income may be allowed as co-borrowers. They should meet the lender's requirements and provide the necessary financial support.
Spouse:
If you are married and your spouse meets the lender's eligibility criteria, they can act as a co-borrower. Their income and financial stability will be assessed to determine their contribution to the loan repayment.
It's important to note that the co-borrower's income, credit history, and financial stability play a significant role in loan approval. Lenders assess the combined repayment capacity of both the borrower and co-borrower while considering the loan application. When selecting a co-borrower, consider individuals who have a good credit history, stable income, and willingness to support your education journey. They should be aware of the responsibilities associated with being a co-borrower and be willing to provide the necessary documentation for the loan application.
It's advisable to discuss the co-borrower option with your preferred lending institution to understand their specific requirements and eligibility criteria. This will help you identify the most suitable co-borrower and ensure a smoother loan application process.
