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Where do you stand in the floating vs fixed interest rates debate? Confused about why this matters? Deciding between fixed and floating interest rates is crucial as it affects the amount you have to pay as EMIs. Choosing the right type of interest rate allows you to save more on interest payments. 

In any discussion about fixed interest vs floating interest rates, you first need to understand them. To understand the meaning and difference between fixed interest rates and floating interest rates, read further. 

What is a Floating Interest Rate?

This rate depends on a benchmark rate set by the lender. The EMIs towards your loan repayment will change accordingly. Simply put, it varies as per market fluctuations.

The lenders set a period after which they will revise the rate of interest on your loan. The lender can change these rates annually, half-yearly or quarterly. Note that the EMI amount that you pay monthly remains the same. The lender only alters the tenure according to the changing benchmark rate. 

Benefits of Floating Interest Rates

If you decide to go with these rates, you get to enjoy the following benefits:  

• Floating rates are generally lower than the fixed rates. So, you stand to save on your total cost of borrowing.
• If the lender makes a downward revision to the benchmark rate, you stand to gain from the reduced interest payments and shorter loan tenure. 

Drawbacks of Floating Interest Rates

There are also certain disadvantages to consider: 

• As the interest rate fluctuates according to market conditions, this lending option is considered unstable.
• In a low-inflationary market, the floating interest rates can remain high for a long time. This can burn a hole in your pocket.

What is a Fixed Interest Rate?

This interest rate is fixed at the time of your loan agreement and remains unchanged throughout your repayment duration. However, lenders generally peg it at 1%-2% higher than the prevailing benchmark rates. 

As opposed to floating interest rates, you can not avail yourself of reduced interest payments when the repo rate lowers. However, it provides a sense of certainty as your interest outgo also remains unchanged through the tenure. 

Benefits of Fixed Interest Rates

When you choose a loan with this rate, these are the benefits that you enjoy:

• Fixed interest rate offers predictability and certainty about the interest amount that you need to pay and the tenure you have for repayment
• Fixed interest rates become a more viable option when the repo rate is low
• This type of interest also allows you to calculate the overall cost of your borrowing with ease

Drawbacks of Fixed Interest Rates

Similar to floating interest rates, these rates have some drawbacks:

• As opposed to the floating interest rates, you do not benefit even if the repo rate lowers.
• A fixed interest rate is generally higher in comparison to floating interest rates.

Difference Between Fixed and Floating Interest Rates

Here are a few points of difference to consider when comparing floating vs fixed interest rates: 

Basis of Difference	Fixed Interest Rate	Floating Interest Rate
High/Low	These are comparatively on the higher side	These rates are generally lower
Number of EMIs	It stays fixed as the loan tenure doesn’t change	It may change with any fluctuation in the tenure due to changes in rates
Market Fluctuations	They don’t change with market fluctuations	They fluctuate with changes in the market
Ideal For	These are a good option for short and medium-term loans	These are ideal for long-term loans
Financial Management	Planning and management of finances is easy since the interest amount remains the same	Planning and managing the budget is difficult since the interest amount is subject to change

At Fibe, you can get an Instant Personal Loan of up to ₹5 lakhs at fixed and competitive rates. You can pay off the loan early and become debt-free faster without any prepayment charges. Download our Personal Loan App from the App Store or Google Play or apply through our website to access easy credit. 

FAQs on Fixed vs Floating Interest Rates

Which is better among fixed vs floating interest rates?

It depends on your needs and preferences: 

• If you are looking for stability, a fixed interest rate is the perfect option for you
• If security is not your prime consideration, you can go with the floating interest rate

Do market conditions affect fixed and floating interest rates?

The RBI periodically revises the repo rate based on market conditions. While they affect the floating rates, they bear no effect on the fixed rates. 

Can I switch from a fixed interest rate to a floating interest rate?

Yes. Some lenders allow you to shift to floating rates after paying some EMIs.

How do the floating interest rates work?

Repo rates and floating interest rates are directly related. When the repo rate goes up, the floating interest rates also spike and vice versa. So, if the rates go up, the tenure may increase, and if they go down, the tenure may decrease.

Is a floating interest rate a good option?

Yes, it is an attractive option if you wish to save on interest payments. You may benefit if the lender lowers the benchmark rate.

Microfinance meaning, in simple words, indicates providing banking facilities to those who do not have access to traditional financial services. Financial services are an efficient way to help meet your personal goals. But how do these solutions impact the economy on a larger scale? Obviously by facilitating cash flow and liquidity in the market. 

That said, what happens when most of the population cannot access these services? As a result, growth gets stunted. One reason for the financial exclusion is the stringent eligibility requirements set by institutions. Due to these, individuals belonging to the low-income group are often left out. However, microfinance serves as a viable solution, promoting financial inclusion.

Read on to learn all about microfinance, its importance, benefits and more.

What is Microfinance?

Microfinance in India refers to the financial services made accessible to those who cannot access them through traditional institutions. Microfinance was traditionally made available through microfinance institutions (MFIs).

Microfinance companies in India operate similarly to banks, NBFCs and other financial institutions that offer services on a larger scale. The difference, however, lies in the fact that MFIs offer services catered to meet the requirements and financial capability of the low-income group.

A key eligibility requirement to avail of microfinance services is the income limit, which is set at ₹3 lakhs by the RBI. This is important because companies and institutions offering services to a larger group often have high-income requirements, thus making them inaccessible to the low-income group. 

People are increasingly borrowing from microfinance institutions due to the benefits it offers to individuals and the country. Banks and NBFCs have also started offering basic financial services to their customers after realising the needs that microfinance companies cater to. 

Types of Microfinance

A microfinance company is often differentiated based on the service it offers. Listed below are the basic financial services offered through microfinance:

• Microloans 

A collateral-free credit option that enables entrepreneurs to set up or expand a small business. When they repay on time, it also gives them a chance to avail of larger services from traditional institutions that require a good credit history.

• Microinsurance

Through this, individuals or small businesses ca access insurance coverage that protects them against unexpected expenses at a lower premium.

• Microsavings

By eliminating the minimum balance requirement, such services encourage them to invest at their convenience and earn returns, ultimately inculcating financial discipline.

Benefits of Microfinance

Here are some of the top benefits of microfinance that the underserved sections of population get to enjoy:

• Provides access to funding that often isn’t available through traditional institutions
• Offers opportunities for employment by allowing small business owners to grow
• Gives the group a chance to become self-sufficient and meet their goals
• Reduces financial stress and makes better opportunities accessible
• Access to flexible loan terms at affordable interest rates
• Loans available without providing any collateral as security

How Microfinancing Works in India?

Microfinancing in India works through the following channels:

SHG-Bank Linkage Programme (SBLP)

Launched by NABARD IN 1992, the SHG-Bank Linkage Programme encourages women belonging to the economically weaker sections to form groups of 10-15 members and contribute their savings regularly to the group. From these pooled savings, members of the group can avail of loans when needed. 

Microfinance Institutions (MFIs)

Microfinance Institutions (MFIs) are organisations that provide microfinance services like:

• Loans
• Bank accounts
• Insurance
• Remittances

These institutions get financial resources from lending institutions, which they use to provide affordable loans to the economically weaker sections. They work like Joint Liability Groups (JLGs), which are informal groups of 4-10 members. These JLGs can apply for loans as group members or individually. 

What are Microfinance Institutions?

Check out the various types of microfinance institutions:

Joint Liability Groups

Joint Liability Groups (JLGs) are informal groups with 4-10 members that seek loans based on mutual guarantee. Farmers, tenants and rural labourers are the main borrowers and loans associated with agriculture and similar businesses are the most common. 

Self-help Groups

Self-help Groups (SHGs) are groups with people belonging to similar economic groups seeking to financially support each other. The group members pool funds for a specific period to meet their business needs. 

NABARD’s SHG linkage program also allows various self-help organisations to borrow money from banks. To get the funds from banks, they need to provide a record of making payments regularly.

Grameen Bank Model

The Grameen Bank model was introduced by the Nobel Laureate, Prof. Muhammad Yunus, in the 1970s in Bangladesh. The main aim of this model is to boost and stabilise the rural economy. This model has also helped in the introduction of Regional Rural Banks (RRBs) in India to offer financial support to the economically weaker sections.

Rural Cooperatives

Rural cooperatives were started in India during the independence era. It included collecting assets from the financially weaker individuals and providing banking services to them. This system did not work as planned since it was more beneficial to creditworthy borrowers in rural India.

Microfinance in India is growing rapidly due to the emerging MFIs and financial institutions, which now offer financial services inclusively. Among the many banks, NBFCs and financial institutions promoting financially inclusive growth is Fibe. 

Through Fibe, you can get an Instant Personal Loan of up to ₹5 lakhs affordably. With easy-to-meet eligibility criteria and an alternate credit scoring model, Fibe aims to make loans accessible even to those who are new to credit. Download the Fibe Instant Loan App or log in to our website to apply digitally and get quick access to funds.

FAQs on Microfinance

How to apply for microfinance in India?

You need to visit the microfinance institution (MFI) of your choice to get microfinance. Then, connect with a representative to discuss your needs, fill out the necessary form and submit the required documents. Checking the process and requirements before applying is important since they differ across various financial institutions. 

What documents do I need to submit to avail of a microfinance loan?

The document requirements for a microfinance loan depend on the institution. Generally, you need to submit your ID, address and income proof with a filled application form. If you are getting a loan for your business, you will need to provide your business and financial documents as well.

How do I know if I am eligible for a microfinance loan?

Income is an important eligibility criterion for microfinance loans and the RBI has set the threshold at ₹3 lakhs. Microfinance institutions may also have other eligibility criteria. Therefore, checking the eligibility criteria of the particular institution is important to understand your eligibility for the loan.

What are the benefits of microfinance?

Some top benefits of microfinance include:

• Immediate access to funds
• Financing solutions for those excluded from traditional institutions
• Better financial growth on a personal and market level

What is the difference between a bank and a microfinance institution?

A key difference between a bank and a microfinance company in India is that a microfinance company provides services to people in the low-income group. On the contrary, a bank offers services to people belonging to all income groups.

There is no doubt that knowing how to check bank balance is important. It helps you track the receipt of funds, plan your budget and even help you understand if you need to get credit to fulfil your needs. Apart from actually visiting your bank, checking balance today is easier than ever. In this digital-first era, you can check bank balance online in seconds. 

Such methods are both quick and convenient as you can access your bank account information from the comfort of your home or on the go using just your smartphone or computer. Read on to know how to check bank balance in just a few clicks and save both time and effort. 

Steps to check bank balance

Access your bank’s net banking facility 

Logging in to your bank’s website is the most traditional way to check bank balance online. If you are new to using this service, you can register for net banking with ease. It takes just a few minutes to share the needed information and set up your login credentials. If you already have them in place, you can log in 24X7 to know your bank account balance. 

Use your bank’s mobile application 

Most banks today have dedicated apps that you can download on your phone, tablet or even a laptop. You can use the app to log in with your credentials and view your account balance in seconds. 

Send a text to know your balance 

The SMS or text message service is another way you can check your balance, especially if you do not have access to the internet. While not all banks offer the SMS service to check your balance, you can enjoy it with quite a few. You can make the most of this facility to check the amount in your account with top banks like SBI, Citi Bank and RBL Bank. 

Utilise a UPI app 

One of the fastest and easiest ways to check bank balance online is to use an app that has the United Payments Interface (UPI). Such UPI mobile applications include Google Pay, PhonePe and Paytm. Download these apps and register with your details. Then using the same mobile number that your bank account is registered with, you can use the OTP to add and link your bank account to the app. Once you complete the process, you can set a PIN and check your account balance anytime, anywhere! 

Leverage the missed call option 

Another way you can get your bank account balance is by placing a missed call to a specific number provided by your bank for this service. For this to work, ensure that your bank offers the facility and that you have registered your mobile number.

Another way you can get your balance is by calling your bank’s toll-free number or contact number and asking for it. This will require you to share your data or set up a specific PIN but also makes it easy for you to know your balance without having to go online. 

Keep in mind that most of these methods do require you to set up your login credentials and register your mobile number. So, ensure you keep these details secure. 

Now that you know how to check bank balance, you can use any of these ways to stay updated about your finances. If you fall short of funds to make a purchase or pay important bills, don’t stress. Simply take an instant loan from Fibe to access anywhere from ₹5,000 to ₹5 lacs in just 10 minutes! Download our Instant Loan app from Google Play or the App Store today and get funds with ease. 

FAQs on how to check bank balance 

How can a bank account balance be checked on a mobile phone? 

To check bank balance on a mobile phone, you can download your bank’s mobile banking app, log in using your internet banking credentials, and navigate to the ‘Account Summary’ or ‘Balance Inquiry’ section to view your bank balance. You can also send an SMS or give a missed call to your bank’s designated number to receive your bank balance via SMS. 

What is account balance and available balance? 

Account balance refers to the total amount of money in your bank account, including both the deposited funds and any pending transactions or holds. Available balance, on the other hand, is the amount of money that you can withdraw or use for transactions, excluding any pending transactions or holds. 

Can someone check my account balance? 

No, unless you share your internet banking credentials or provide access to your bank account, others cannot check your account balance. 

How can I see my bank statement online? 

To view your bank statement online, you can log in to your internet banking account or mobile banking app, navigate to the ‘Statements’ or ‘E-Statements’ section, and select the desired account and statement period. You can then view the statement online or download it in your preferred format. 

What number do I call to check my bank balance? 

Each bank has a designated number to check bank balances via phone call or SMS. You can find this number on your bank’s website, mobile banking app, or by contacting your bank’s customer service.

Bank of Baroda Balance Check Number
Canara Bank Balance Check Number	HDFC Balance Check Number
Central Bank Balance Check Number	IDBI Bank Balance Check Number
Kotak Mahindra Bank Balance Check Number	SBI Balance Check Number

Loan syndication is a financing arrangement in which multiple banks or financial institutions jointly provide a large loan to a single borrower. In simple terms, the loan syndication meaning refers to lenders coming together to meet a funding requirement that may be too large or risky for one lender to handle alone. 

Each lender contributes a portion of the total loan, helping the borrower access substantial funding while distributing the lending risk among multiple institutions. 

What is Loan Syndication? Meaning and Overview 

Loan syndication is a financing process where multiple lenders jointly provide funds to a single borrower. It is generally used when the required loan amount is too large for one bank or exceeds an individual lender’s preferred risk exposure. 

Usually, one financial institution acts as the lead arranger and coordinates the loan with other participating lenders. Each lender contributes an agreed portion of the total amount, while the borrower receives the required funding under a coordinated loan arrangement. 

Loan syndication is commonly used for large acquisitions, infrastructure projects, business expansion, project financing and other high-value capital requirements. 

Loan Syndication Process: Step-by-Step Stages 

The loan syndication process generally involves the following stages: 

First Stage: Pre-Mandate 

The process begins when the borrower identifies a large funding requirement and approaches a lender or invites proposals from multiple lenders. After selecting a lead lender or arranger, the lender assesses the borrower’s financial position, funding requirement and repayment capacity. 

Second Stage: Syndication and Disbursement 

The lead arranger prepares the loan proposal and invites other banks or financial institutions to participate. The participating lenders decide how much they want to contribute based on their lending capacity and risk appetite. 

Once the lenders agree on the loan amount, interest rate, repayment schedule and other terms, the required documents are completed and the funds are disbursed to the borrower. 

Third Stage: Post-Closure 

After disbursement, the agent or lead lender coordinates the administration of the loan. This can include monitoring repayments, maintaining records, managing payment flows and communicating updates between the borrower and participating lenders. 

Key Parties in a Loan Syndication 

Several parties may be involved in a syndicated loan, with each performing a specific role: 

• Borrower: The business, corporate entity or other organisation seeking the loan. 

• Lead arranger: The bank or financial institution that structures the transaction and brings other lenders into the syndicate. 

• Participating lenders: The banks or financial institutions that contribute portions of the total loan amount. 

• Agent bank: The institution responsible for administrative tasks such as coordinating payments, repayments and communication between parties. The agent bank may also be the lead arranger in some transactions. 

• Legal advisors: They may assist in preparing and reviewing loan agreements and other legal documentation. 

Example of Loan Syndication 

Consider that a company named ABC Pvt. Ltd. approaches XYZ Bank for a loan of ₹80,000 crore to acquire another business entity. 

Since the amount is beyond XYZ Bank’s preferred risk exposure, the bank decides to form a syndicate of lenders instead of funding the entire amount itself. XYZ Bank acts as the lead arranger and contributes ₹40,000 crore, while four other banks contribute ₹10,000 crore each. 

ABC Pvt. Ltd. receives the required ₹80,000 crore, while the financing requirement and associated lending risk are distributed among the participating banks. 

Types of Loan Syndication: Underwritten, Club and Best-Offer 

There are three common types of loan syndication: 

Underwritten Deal 

In an underwritten deal, the lead arranger commits to providing the entire required loan amount. If the arranger is unable to secure enough participation from other lenders, it may have to fund the unsubscribed portion itself. 

This provides greater funding certainty to the borrower but increases the commitment and risk taken by the underwriter. 

Best-Offer Syndication 

In a best-offer or best-efforts arrangement, the lead arranger attempts to bring enough lenders together to meet the required loan amount but does not guarantee that the full amount will be raised. 

If sufficient lenders do not participate, the borrower may receive a lower amount or the terms of the transaction may need to be reconsidered. 

Club Deal 

A club deal generally involves a smaller group of lenders that contribute equal or relatively similar amounts towards the loan. 

Since fewer lenders are involved, the arrangement may be simpler to coordinate than a wider syndicated loan. 

Features and Benefits of Loan Syndication 

Loan syndication can offer several benefits to both borrowers and lenders: 

Access to Large Funding 

It allows borrowers to raise significant amounts of capital that may be difficult to obtain from a single financial institution. 

Risk Distribution 

Since several lenders participate in the loan, the credit exposure is distributed instead of being concentrated with one lender. 

Coordinated Loan Management 

The lead arranger or agent bank coordinates with participating lenders, giving the borrower a central point for many administrative aspects of the loan. 

Access to Multiple Lenders 

Borrowers can access funding from several banks and financial institutions through a single coordinated transaction. 

Competitive Loan Terms 

Participation from multiple lenders can help borrowers explore competitive pricing and financing terms, depending on their credit profile and market conditions. 

Flexible Structuring 

Syndicated loans can be structured based on factors such as the required amount, tenure, repayment schedule and purpose of borrowing. 

Now that you understand the loan syndication meaning, types and process, it is easier to see why this financing method is generally used for large-scale funding requirements. 

For regular or big-ticket personal expenses, you can explore financing options such as a Fibe Personal Loan of up to ₹10 lakh. Simply download the Fibe Personal Loan App to get started. 

FAQs On Loan Syndication 

1.How does loan syndication work? 

Loan syndication works by bringing multiple lenders together to fund a single loan. A lead arranger generally structures the transaction, invites other lenders to participate and coordinates the process. Each participating lender contributes an agreed portion of the total loan amount. 

2.What is a loan syndication agent? 

A loan syndication agent is the bank or financial institution responsible for administering and coordinating the syndicated loan. It may manage communication, repayments, documentation and other activities between the borrower and participating lenders. 

An agent is not automatically responsible for guaranteeing the entire loan amount. Such a commitment generally applies when a lender acts as an underwriter. 

3.Who are the loan syndication participants? 

Loan syndication participants generally include the borrower, lead arranger, participating banks or financial institutions and the agent bank. Legal advisors and other specialists may also be involved depending on the transaction. 

4.How is the loan syndication process structured? 

The process generally starts with the borrower approaching a lender for funding. A lead arranger then assesses the requirement, structures the loan and invites other lenders to participate. 

Once lenders agree on their respective contributions and the loan terms are finalised, the necessary agreements are signed and funds are disbursed. The agent bank subsequently helps manage the loan during its tenure. 

5.What are the features and benefits of debt syndication in India? 

Debt syndication can provide several benefits, such as: 

1. Access to large amounts of funding from multiple financial institutions 

2. Distribution of credit risk among participating lenders 

3. Coordinated loan administration through a lead arranger or agent 

4. Potential access to competitive financing terms 

5. Flexibility to structure large and complex funding requirements 

6.What is the difference between loan syndication and a consortium loan? 

Both loan syndication and consortium lending involve multiple lenders financing a single borrower, but their structures can differ. 

In a loan syndication, a lead arranger generally structures a specific financing transaction and invites other lenders to participate based on agreed terms. 

In consortium lending, a group of banks generally works together more collectively to finance and monitor the borrower’s credit requirements, usually under a common arrangement led by a consortium leader. 

The exact structure can vary depending on the lenders, borrower and type of financing. 

7.What are the disadvantages of loan syndication? 

Some possible disadvantages of loan syndication include: 

• A longer approval and documentation process because multiple lenders are involved 

• Additional arrangement, legal and administrative costs 

• More coordination between the borrower and participating lenders 

• Complex loan agreements for large transactions 

• Less flexibility in changing certain terms once all participating lenders have agreed to them 

8.Is loan syndication only for large companies? 

No, loan syndication is not necessarily restricted only to large companies. However, it is primarily used for large financing requirements where obtaining the entire amount from one lender may not be practical. 

Therefore, syndicated loans are commonly associated with large businesses, corporations, infrastructure projects, acquisitions and government or institutional borrowers rather than everyday personal borrowing needs. 

This guide explains what a co-applicant for a loan means, who qualifies as one under typical Indian lending norms, and how a joint application affects approval, loan amount and credit score. You’ll also find a step-by-step guide to applying for a personal loan with a co-applicant on Fibe, plus a quick-reference table on co-applicant vs co-signer. Read time: about 5 minutes. 

A co-applicant for a loan is a person who applies for and shares equal legal responsibility for a loan alongside the primary borrower, from approval through to the final EMI. Lenders assess both applicants’ income and credit profile together, which is why adding a co-applicant often improves approval odds and unlocks a higher loan amount at a better rate. In India, most lenders only accept immediate family, typically a parent, spouse or sibling, as co-applicants. 

QUICK STAT 

Under the RBI’s Master Direction on Know Your Customer, every holder of a joint application, not just the primary borrower, must independently complete KYC. [RBI — flag for review] 
Source: RBI FAQs on Master Direction on KYC

What is a Co-Applicant for a Loan? 

A co-applicant, also called a joint applicant, takes on the loan together with the primary borrower. Both names appear on the loan agreement and both are equally liable if an EMI is missed. This differs from a guarantor: a co-applicant actually receives and uses the loan amount, while a guarantor only backs the primary borrower’s promise to repay. 

Lenders add up the co-applicant’s income, evaluate their credit score and factor in existing debt before deciding the sanctioned amount. If your own income or credit history falls short of a lender’s cut-off, a financially stable co-applicant can bridge that gap. Most lenders restrict this role to parents, spouses or siblings, to keep the credit relationship traceable within a family unit. 

Which Loans Allow a Co-Applicant? 

Co-application isn’t limited to personal loans: 

1. Personal loans: A co-applicant boosts eligibility when the primary borrower’s income alone doesn’t meet the threshold. 

2. Home loans: Extremely common, since lenders club both incomes for a larger amount, and both applicants can claim tax benefits. 

3. Loans against property: A co-owner of the mortgaged property is usually also required to be a co-applicant. 

4. Education loans: Parents typically co-apply since students rarely have an independent credit history. 

5. Business loans: Family members with a stake may co-apply to strengthen the assessment. 

DID YOU KNOW? 

Home loans and education loans almost always involve a co-applicant by design. Personal loans are the exception where it’s optional, used mainly to plug an eligibility gap. 

Advantages and Disadvantages of a Personal Loan Co-Applicant 

Advantages of a Personal Loan Co-Applicant 

6. Increased chances of approval, since the lender evaluates two credit profiles instead of one 

7. Access to a higher loan amount at a more competitive interest rate 

8. Shared repayment responsibility, which reduces pressure on any single applicant 

9. Possible tax benefits for both applicants, depending on the loan type 

Disadvantages of a Personal Loan Co-Applicant 

10. A missed EMI hits the credit score of both applicants, not just the primary borrower 

11. Added financial stress if one applicant can’t contribute their share 

12. Can affect ownership claims or asset division on secured loans 

13. Exiting the arrangement mid-tenure usually needs the lender’s approval and fresh underwriting 

WATCH OUT 

A co-applicant only helps if their financial profile is genuinely strong. Adding someone with a shaky credit history can drag down an otherwise approvable application. 

Co-Applicant vs Co-Signer: What’s the Difference? 

People use these terms interchangeably, but a lender treats them very differently. 

Aspect	Co-Applicant	Co-Signer
Access to loan amount	Yes, shares it with the primary borrower	No, never receives the funds
Repayment responsibility	Equal, from day one	Only if the primary borrower defaults
Credit report impact	Always affected by every EMI	Affected only on default
Best used when	Both applicants need or use the funds	Primary borrower’s credit needs a boost

In short, a co-applicant genuinely shares the loan, while a co-signer is a safety net the lender falls back on only if things go wrong. 

How to Decide if You Need a Co-Applicant 

Run through this checklist before roping someone in: 

14. If you already meet the eligibility criteria on your own, skip co-application. It adds another person’s credit exposure for no real benefit. 

15. If your co-applicant’s credit score is weak or their debt is high, avoid co-applying. It can lower your combined eligibility instead of raising it. 

16. Confirm the co-applicant understands that a missed payment affects their credit report too. 

17. Check whether the lender allows an easy substitution of the co-applicant later. 

PRO TIP 

Consider Ravi, a 27-year-old marketing executive earning ₹28,000 a month. His ₹3,00,000 personal loan application was rejected on income grounds. He reapplied with his mother, earning ₹45,000 a month, as co-applicant. Their combined income got the same amount approved over 36 months, with EMIs of roughly ₹9,500 shared between them. 

How to Apply for a Personal Loan with a Co-Applicant on Fibe? 

Applying with a co-applicant on the Fibe app follows a simple process: 

1. Download the Fibe Instant Loan App and sign up using your mobile number. 

2. Enter your income, employment and basic KYC details. 

3. Add your co-applicant’s PAN, income proof and contact details at the co-applicant step. 

4. Both applicants complete individual KYC and upload documents digitally. 

5. Fibe’s alternate scoring mechanism evaluates the combined application, which helps even first-time borrowers. 

6. On approval, review the sanctioned amount, tenure and EMI split before accepting. 

7. Once accepted, the loan amount, up to ₹10,00,000, is disbursed to the primary applicant’s account. 

If your credit score or a strict cut-off is holding you back, adding a co-applicant on Fibe is often the fastest way past that hurdle. Download the Fibe Instant Loan App and get instant cash up to ₹10,00,000 without a long credit history. 

FAQs On Co-Applicant for a Loan 

1.  What criteria does a co-applicant need to meet? 

A stable income, a healthy credit profile and independent KYC compliance, just like the primary applicant. 

2.  Who is eligible to be a co-applicant on a personal loan? 

Most lenders, including Fibe, restrict this to immediate family: parents, spouse or siblings. Exact lists vary, so check before applying. 

3.  Is a co-applicant also a co-owner of the asset? 

Not necessarily. A co-owner is usually also required to be a co-applicant on secured loans, but the reverse isn’t automatic. 

4.  What’s the difference between a co-owner, a co-borrower and a co-applicant? 

A co-owner has legal rights to the asset. A co-borrower shares repayment responsibility on default but doesn’t access the funds directly. A co-applicant jointly receives and repays the loan. 

5.  Do co-applicants have to pay the EMI? 

Yes. Both applicants are equally liable, and a missed EMI affects both credit reports regardless of who transfers the payment. 

6.  Is a co-applicant’s CIBIL score required for approval? 

Yes. Lenders pull every co-applicant’s credit report, since the decision and rate depend on combined creditworthiness. 

7.  Can I apply for a Fibe personal loan with a co-applicant? 

Yes. Fibe allows eligible family members to co-apply for up to ₹10,00,000 through the app, with both completing KYC digitally.