Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
When it comes to defining co-borrowers, it can be said that they are indicative of the two, multiple or joint borrowers of any loan. They are all applicants for the loan although they may not all be co-owners of the asset in question in some cases. Co-borrowers all have to share the repayment liability of the loan and the loan is sanctioned after evaluating their creditworthiness, income, and other eligibility criteria. Lenders usually view these loans more favorably since they come with lower risks, since the repayment liability is shared amongst multiple borrowers.
Co-borrowers are widely seen in the home loan segment. For example, two spouses, children and other eligible types of relatives may be co-borrowers. Other people may be co-borrowers for construction and other loans in this case. Home loans usually have co-borrowers as spouses who are joint home owners and will share the repayment obligations jointly. They also get eligibility for getting individual tax benefits on their home loan repayments, subject to the overall limit. Hence, this term is widely relevant in the real estate sector.
