Best Co-signed or Joint Loans in Singapore in 2025

In Singapore, where financial prudence is valued, understanding the roles of co-signers and co-borrowers is crucial for those seeking personal loans. Both can improve loan eligibility, but their responsibilities and access differ significantly.

Co-signer: A co-signer in Singapore essentially acts as a guarantor. They lend their creditworthiness to the primary borrower's application, agreeing to repay the loan if the borrower defaults. However, they do not have access to the loan funds, nor do they automatically receive information about the loan's progress, like payment history, unless they specifically request it. In Singapore, lenders might require co-signers to have strong credit profiles and stable incomes to mitigate risk.

Co-borrower: A co-borrower in Singapore is a joint applicant who shares equal responsibility for the loan's repayment from the start. They have full access to the loan funds and all loan-related information. This arrangement is typically seen in joint loans where both parties benefit directly from the funds and share the financial obligation. Lenders in Singapore will assess both applicants' credit and financial stability, as they are equally liable for the loan.

Securing a personal loan in Singapore can be challenging if your financial profile isn't strong enough. Adding a co-signer or co-borrower can significantly improve your chances, but it requires careful planning and understanding of the process:

1. Evaluate your financial situation: Begin by assessing both your and your co-applicant's credit scores, incomes and existing debts. Lenders in Singapore scrutinise these details to determine loan eligibility and risk. Understanding your combined financial standing will help you set realistic expectations for loan amounts and interest rates.

2. Choose the right lender: Different lenders in Singapore have varying requirements for joint loans or to co-sign a loan. Some may specialise in these arrangements, while others may have stricter criteria. Compare the various loans available as well as the interest rates, loan terms and eligibility requirements from banks, financial institutions and licensed moneylenders to find the best fit.

3. Gather documents: Get all necessary documents ready for both applicants, including NRICs, proof of income (payslips, CPF statements) and bank statements. Having complete and accurate documentation will streamline the application process and prevent delays.

4. Submit the application: Apply for pre-qualification with multiple lenders to compare potential loan offers without impacting your credit score. Once you've chosen a lender, submit a formal application, which will trigger a hard credit check for both applicants.

5. Wait for approval: Lenders in Singapore will thoroughly review your application, considering both applicants' creditworthiness and financial stability. Approval times can vary, so be prepared to wait a few business days for a decision.

6. Sign the agreement: Carefully review the loan agreement, including interest rates, repayment terms and any fees, before signing. Ensure both you and your co-applicant fully understand the terms and conditions of the loan.

>> Read: Pre-qualify on SingSaver

In Singapore, financial institutions carefully evaluate your credit and income to determine loan eligibility and terms. Including a co-signer with a robust financial profile can significantly strengthen your application.

A co-signer or co-borrower can be particularly useful if:

• Your credit score is low: While some personal loans cater to those with less-than-ideal credit, many Singaporean lenders prefer applicants with higher scores. A co-applicant with a strong credit history can improve your chances.

• You require a larger loan amount: Lenders in Singapore typically offer higher loan amounts to applicants with strong financial backgrounds. Adding a co-signer can help you qualify for a more substantial loan.

• You desire a lower interest rate: A lower Annual Percentage Rate (APR) translates to lower monthly payments. Securing a co-signer with excellent credit can potentially lead to a more favorable interest rate.

The extent to which a co-signer assists depends on:

• The co-applicant's Credit Bureau Singapore (CBS) score

• The co-applicant's credit history

• The co-applicant's debt-to-income ratio

• The specific lending criteria of the Singaporean financial institution

While adding a co-signer can improve loan approval chances in Singapore, it's crucial to acknowledge the potential risks involved, including:

• Shared responsibility: A co-signer in Singapore is legally obligated to repay the loan if the primary borrower defaults. This shared responsibility can strain relationships if financial difficulties arise, as both parties are held accountable.

• Impact on credit scores: Both the borrower's and co-signer's credit scores in Singapore can be affected by the loan. Late payments or defaults will negatively impact both credit reports, potentially hindering future loan applications.

• Personal relationships: Financial disputes related to the loan can damage personal relationships. In Singapore, where social harmony is valued, it's essential to have open and honest discussions about potential risks and repayment plans before entering such an agreement.