Especially with large loan amounts, a bank will always insist that a loan be concluded with two applicants. The risk is too great that a single applicant will fail and the bank will have to give up their money. But what is different about a loan with 2 applicants and what needs to be considered?
With every loan application, the bank first checks the so-called creditworthiness of the potential borrower. In order to be able to objectively evaluate this, the borrower not only has to agree to a query from Credit Bureau, but also has to provide various meaningful documents. Mainly the monthly income has to be shown and explained. This includes not only the wages or the salary earned, but also all other income such as child benefit, maintenance, income from rentals or other regular income. The expenditure is compared with this information. As with the income, it must also be possible to prove it credibly.
If you now choose a loan with two applicants, both applicants must be able to provide these documents. The bank will then calculate the lump sum required for everyday life. The remaining amount can be used as an installment for the loan.
The chances of getting a loan are often better if you can name a second applicant. For the banks, this means additional security, which is often rewarded with lower interest rates and better conditions. It is not critical whether the second applicant comes from your own family. It is only important that he also has a good credit rating and receives a regular income that is in a attachable area.
The only disadvantage of such a loan is the dependence of the two borrowers on one another. Both are liable for the other borrower if the borrower can no longer pay or otherwise steals responsibility. In such a case, the bank will always turn fully to the second borrower, who will then be liable for the entire amount. So you should carefully consider in advance who you want to establish such a close “connection” with and whether it can last over a long period of time. Because only then is it really worth thinking about such an option.