Joint Personal Loans

Compare joint personal loans with Savvy and start the application process with your partner today.

Compare personal loans
Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on July 4th, 2024       

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If you need money for a big expense but don't have the cash upfront, a personal loan can offer a convenient solution. Sharing the responsibility with a partner, friend or family member can make the loan more manageable by splitting the repayments, increasing your chances of approval and potentially allowing you to borrow more. If you’re looking for a joint personal loan in Australia, explore your options with Savvy. With us, you can compare dozens of offers from lenders across the country to find a deal that suits. Get started today! 

What is a joint personal loan?

A joint personal loan is a personal loan that is taken out by two people, known as co-borrowers, who are both equally responsible for paying it off. Other than this, a joint personal loan is a standard loan product, where you receive a lump sum of money to be repaid in regular instalments. These are typical characteristics of a personal loan:

  • Unsecured or secured: personal loans can be secured – meaning you put up a valuable asset like a car as security – or unsecured, meaning you borrow money without putting up any collateral.
  • Loan amount: get approved for however much you can afford from as little as $2,000 all the way up to $75,000 for an unsecured loan, and more for a secured loan.
  • Loan term: loan terms are available from one to seven years, giving you and your co-borrower flexibility to select a loan length that accommodates your repayment needs.
  • Interest and fees: on top of your loan amount, you will have to pay interest as well as potential fees such as monthly account fees and late payment fees.
  • No deposit: 100% financing is available so you won’t need to make a deposit to take out a personal loan.

Taking out an unsecured loan gives you the freedom and flexibility to spend it as you choose – so even if your intended purpose for the funds changes, you can reallocate the money as needed without any restrictions imposed by the lender.

What are the eligibility requirements for a joint personal loan?

To take out a joint personal loan in Australia, there are general criteria you will both be required to meet as a co-borrower:

  • You must be at least 18 years old.
  • You must be an Australian citizen or permanent resident living in Australia – though some lenders may accept applicants on certain temporary visas.
  • You must be employed – this could be in a full- or part-time permanent role, as a casual worker or self-employed, though conditions apply.
  • You must be earning at least $20,000 annually from consistent sources.
  • You should have a good credit score with no history of defaults or bankruptcy. You may be able to get a joint loan with bad credit, but your options will be more limited.

Before applying, it’s important to check that both you and your co-borrower are eligible. If you apply for a personal loan but don’t meet the criteria, you will be rejected and receive a mark on your credit file. 

Why choose a joint personal loan?

There are a number of reasons to opt for a joint personal loan if you need to borrow money:

  • Increase your likelihood of a successful application: too many cooks don’t spoil the broth with joint loans, with one or more extra borrowers potentially raising your chances of having your application approved.
  • Borrow more funds: bigger projects can be facilitated by an extra person jumping into the application, as the potential added security for the lender could see them sign off on higher loan amounts.
  • Smaller repayments: by splitting each repayment with your co-borrower, your contribution to the personal loan each month is halved compared to the same loan taken out on your own.
  • Build your credit scores together: when you and your co-borrower make repayments, you’ll each be gradually improving your credit score, potentially putting you in a better position to borrow in the future.
  • Consolidate debt: one of the most common uses for a personal loan is to consolidate outstanding debts. Shared debts are no exception and can help you tackle them together.

However, before applying for a loan with someone else, there are some potential drawbacks to keep in mind:

  • Reliance on your co-borrower: it is a heavy responsibility to charge someone with fulfilling a loan, so make sure your co-borrower is reliable and able to help you share the weight of the joint loan.
  • Potential credit damage: if your co-borrower is unable to consistently pay their share on time, your credit score will sustain the same damage as theirs.

Types of personal loan

Unsecured personal loans

With an unsecured personal loan, you can potentially borrow as much as $75,000 without the need to attach any valuable assets, such as your car, as security. These loans are the most widely available and often the quickest, with same-day approval possible.

Secured personal loans

Secured personal loans, on the other hand, make use of collateral. This lowers your risk profile in the eyes of a lender, potentially lowering your interest rate and expanding your borrowing power beyond what you may be able to get through an unsecured loan.

Variable rate personal loans

Variable interest rates remain open to fluctuation during your term. This means you can benefit from decreasing rates and save on your loan if the market heads in that direction, although you’ll also pay more if rates start rising.

Fixed rate personal loans

Fixed interest rates are locked at the beginning of your loan and remain constant throughout your repayments. This acts as a valuable protection against interest rate increases, as your loan will be unaffected, but you’ll miss out on potential drops as well.

Debt consolidation loans

If you’re paying off multiple debts at the moment, particularly those with high interest (such as credit card debts), consolidating them into one payment can not only make them more convenient to manage but also potentially save you money overall.

Travel loans

Looking to take off on a holiday with your family but want to pay it off at your own speed? Travelling can be expensive, so you can distribute the cost of your next trip over a period you’re more comfortable with by taking out a personal loan to pay for it.

Wedding loans

There are so many costs that go into making your dream wedding a reality, from venue hire to catering to dresses and suits and so much more. By taking out a personal loan, you can start planning the big day you want, even if you can’t pay for it upfront.

Renovation loans

Home improvements are desirable for a range of homeowners to help keep their living space fresh and interesting, not to mention increase its value. You can get past the financial hit of renovations with a personal loan paid in instalments.

Self-employed loans

Personal loans aren’t limited to PAYG employees, though. If you’re running your own business, you can still be approved for financing by submitting tax returns and other alternative documents instead of payslips and utilise your funds however you wish.

Student & education loans

There’s a variety of expenses which come with being a student, ranging from the cost of your courses, textbooks and computer to your accommodation. Taking out a personal loan can make these costs more manageable by spacing them out.

Green loans

Some lenders offer green personal loans, which are designed to be used for energy-efficient appliances and products such as solar panel and air conditioning installation in your home. You can qualify for lower interest rates and fees with this loan.

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How do I compare joint loans?

How to apply for your joint personal loan

Before commencing your personal loan application with your co-borrower, it’s important to understand each step of the process thoroughly to avoid potential delays.

Understanding each of these steps and how they fit into the procedure of applying for personal loans is important, as it can save you valuable time overall and help you expedite your approval and funding.

You can follow these simple steps to see how the process works, from preliminary research and comparison all the way up to having your funds made available for use.

Compare your options with Savvy

Assess the lender and product options right here and decide on the personal loan best suited to your combined needs.

Gather your shared documents

Provide your lender with photo ID, payslips, bank statements, information on assets and liabilities and anything else they may request.

Submit your application

Once you’ve filled out your application form alongside all the required documentation, you’re ready to send it off.

Receive approval and funds

From there, you can receive an instant outcome in 60 seconds and have your funds transferred in 24 hours.

Other frequently asked questions about joint loans

Will I have to pay the whole joint loan if I separate/divorce my partner?

Depending on the nature of the loan and your agreement with your partner, you may have to. If one borrower disappears from the picture, the lender will pursue the other, who would still be legally liable for the whole debt. Ultimately, you’re responsible for the loan if your name is attached as a borrower, regardless of the circumstances that may play out over the course of its repayments.

Do I only owe 50% of my joint loan?

Technically, both co-borrowers owe 100% of the loan. For example, if you enter a $30,000 joint loan with a co-borrower, both borrowers owe $30,000. The lender will only seek out what it has lent, though, so there is no need to pay that amount for each borrower. The lender will likely only chase up one of the borrowers for loan repayments at any given time rather than both, but whether it chooses to alternate between co-borrowers will vary between lenders. Make sure you have a clear repayment arrangement with your co-borrower.

If my co-borrower has bad credit, how will our application be assessed?

Joint applications are assessed on the strength of the applicant in the weaker financial position. This means that, even if you have a decent credit score and comfortable finances, you’re likely to only be approved for an amount that your co-borrower is eligible to take on. In this case, a bad credit borrower can likely only apply for an amount up to around $12,000 at a high interest rate, which is what your joint application will fall within.

What is a personal loan comparison rate?

Your comparison rate is a percentage that incorporates both your interest rate and primary fees, such as establishment and monthly costs. This is designed to give you a more accurate indication of the cost of your loan overall, as an interest rate on its own isn’t wholly representative of this.

Can I choose whoever I like as a co-borrower?

While you can technically apply for a loan with anyone, a co-borrower should be someone that you know, trust and can rely upon to fulfil their half of the deal. Furthermore, lenders may be less likely to approve a personal loan application between two people who have only met a handful of times in the past. Some lenders may even impose additional requirements, such as requiring you to be married or partnered, or to live at the same address.

How is a joint personal loan different to a guarantor personal loan?

A joint personal loan is taken out by two individuals who are both equally responsible for repaying the loan from the start. In contrast, with a guarantor personal loan, a third party agrees to take responsibility for and repay the loan if the borrower defaults, adding an extra layer of security for the lender. 

Helpful personal loan guides

Still looking for the right personal loan?

Personal loans come in all shapes and sizes, so read more about the ways you can use them, as well as how they might work for you.