People applying for a home loan have a better chance of getting approved if they have a co-borrower. This is because the repaying ability of two individuals is higher than that of a single person. Secondly, if the co-applicant is a woman and the first applicant, the chances of approval are even higher. This is because women are perceived to be more responsible with loan repayments.

Many loans, where the loans are given to women, or in which the woman is the first applicant are usually very regular in the repayment. In addition, banks often prefer women to be the first applicant because the bank contacts the first applicant in case of defaults. In the event of a default, most families do not like it if the woman has to receive these calls.


Home loan applications have a standard procedure and applicants need to show three years of filed income tax returns, salary slips for the past three months and proof of residence and identity. However, in spite of having all the documents in place, the bank can still find reasons to reject applications on the basis of credit history and repayment capability. The only way you can improve your credit history is naturally repaying loans. However, you can still improve your chances of loan approval by following a few steps.

These days, many banks ask for a co-borrower when you take out a loan. It is best to include a co-borrower who is younger than the first applicant. This way, even if the co-borrower earns less than the first applicant, the bank has more assurance that the loan will be repaid in the future even if the first applicant defaults on payments due to financial troubles. Applicants might also get a longer tenure on their loans. In addition, the income of a family member that does not fall within any tax bracket can also be shown as savings.

Self-employed individuals will benefit from showing not only their bank balance proof, IT returns and profit and loss statements, but also proof of their top suppliers and clients. In addition to statements of profit and loss, if the applicant can include a separate explanation for the fall in profits, the bank will know that they have nothing to keep secret and can thus be trusted.