In many cases, a loan is intended for two people together. This almost always applies to borrowing for married couples, but unmarried partners also often take out loans for common interests. In principle, more than one borrower can apply for each loan without having to have a relationship or a similarly close relationship between them.
In practice, borrowing for two people is most common in couples, but funding for joint projects by siblings or a parent and an adult is not uncommon. On the other hand, the fact that a loan is intended for two people does not necessarily mean that they have to apply for the loan together.
When does a borrower make sense?
If a loan is intended for two people together, but only one of them has a regular income, borrowing by a single applicant is recommended. With the exception of married couples, the bank only takes into account expenditure for one person in the household bill, increasing the likelihood of loan approval. Both persons are free to agree among themselves an agreement on the participation of the non-borrower in the repayment.
The corresponding contract naturally only works in the internal relationship between the contractual partners and not towards the lender. A contractual repayment agreement, however, avoids later disputes and is always useful if a loan taken out by only one borrower is intended for two people and their lifestyle. This applies particularly to large amounts of credit such as real estate financing or the purchase of a car used by both partners, but also to the purchase loan when buying furniture.
What applies to joint borrowing?
If both people take out the loan for 2 people together, both are jointly and severally liable to the bank. This means that in the event of improper repayment, the debtor can make a claim to one of the two borrowers and the borrower is entitled to a partial reimbursement of the requested amount by his credit partner. As a rule, the loan taken out is serviced by both borrowers by mutual agreement.
In the case of joint ventures and acquisitions, it makes sense that the loan for two people is taken up by both, since the joint signature of the loan agreement underlines that the funding is desired by both. For the bank, the joint borrowing has the advantage that it has two contact persons for the loan repayment, so that the creditworthiness of two joint applicants is usually rated as better than that of a single borrower.
A comparison of the offers of different banks shows that a small number of financial institutions explicitly indicate that loan agreements are only ever concluded with one borrower. This is especially true for Swiss loans without credit checker, as the stringent requirements for borrowers are specifically designed for a customer. Almost all other banks allow two equal borrowers.