Bank of Maldives has announced very well received positive changes to the recently introduced Home Improvement Loan scheme promising to provide easy access to finance for recipients of the ‘Hiyaa’ social housing scheme. The changes announced today will extend to BML Islamic Home Improvement Financing and Home Improvement Financing Plus facility.
In regards to the changes announced today, customers can now apply for the loan with a joint borrower who has a verifiable income. To qualify, the joint borrower must be an immediate family member with a legal connection to the property owner and can include spouse, children, siblings, parents or grandparents.
When you have credit or income challenges, joint borrowing might help you qualify for loans you can’t get on your own. Taking out a loan with someone else may also help you secure lower interest rates and better terms. Of course, joint borrowing comes with some downsides, too. If you’re considering adding a co-borrower to your credit application, it’s a good idea to understand the pros and cons upfront.
Why choose a joint loan?
Although everyone has their own motivations, consumers may seek joint credit for several reasons. In some cases, applying for a loan with someone else may help you qualify for financing when you wouldn’t be eligible on your own. For example, joint personal loans are fairly common among couples when one person has bad credit or when two incomes can help the couple qualify for a larger loan amount.
Applying for a joint loan with someone who has an excellent credit rating might also help you secure lower interest rates or better terms. This is one reason why parents may apply for joint personal loans with their children. Joint borrowing may also be a way to help your child build for the first time.