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Difference between Co-Owner, Co-Borrower, Co-Applicant, and Co-Signer (PPT)

You can apply for a home loan in various capacities u2013 as a co-owner, co-borrower, co-applicant, or co-signer. It is important to understand the difference between these terms before you decide in what capacity you will put your name on the home loan. Each of these roles will have different legal and financial obligations towards the repayment of the home loan, which makes it even more important to understand it in detail and decide accordingly. Here is what you need to understand about each of these home loan terminologies.

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Difference between Co-Owner, Co-Borrower, Co-Applicant, and Co-Signer (PPT)

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  1. Difference between Co- Owner, Co-Borrower, Co-Applicant, and Co- Signer

  2. Co – borrower A co-borrower in a housing loan is someone who, along with the principal borrower, shares responsibility for debt repayment if the primary borrower fails to do so. A co-borrower applies for a loan alongside the primary borrower, and both parties are legally obligated to repay the loan.

  3. Co-owner A co-owner is someone who has a legal interest in the property alongside the primary borrower. Most banks, financial institutions, and housing finance companies require co-owners to become co-borrowers alongside the primary borrower.

  4. Co-applicant Loan repayment is shared among co- applicants. In some cases, a co-applicant may be a respondent to a home loan to meet the bank's eligibility requirements. Only a few specific relationships, such as brother-brother, father-son, mother-son, husband-wife, and so on, are permitted to be added as co-applicants on a home loan.

  5. Co-signer Co-signers are typically used when the primary borrower does not meet the requirements for a home loan due to a poor credit history. Because participation is required due to the primary borrower's lower credit rating, the co-signer must have a strong credit rating. Being a co-signer may make it more difficult to obtain credit in the future.

  6. Thank you! SALES@GOELGANGADEVELOPMENTS.COM (020) 2611 3701 / 02 / 03 (+91) 9071889988

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