Sibling Co-Applicant for Study Abroad Loan
Imagine this your dream university admits you, but your parents either don’t meet the bank’s income criteria or have existing liabilities. The next question that comes up is, “Can my brother or sister step in as a co-applicant?” For Fall ’25 aspirants, this is not just a passing thought but a real concern, especially as lenders are becoming more particular about repayment capacity.
The good news? Many banks and NBFCs in India now accept siblings as co-applicants if certain conditions are met. Lorien Finance has worked with thousands of study abroad applicants facing the same challenge, and this guide will help you understand how a sibling co-applicant for study abroad loan can work to your advantage.
Why Do Lenders Require a Co-Applicant?
Before diving into the details, it’s important to know why lenders insist on a co-applicant. Most students don’t have a stable income while studying abroad. A co-applicant, whether it’s a parent, sibling, or guardian, assures lenders of repayment security. For siblings, the acceptance criteria are often stricter, but the benefits can be equally rewarding if all requirements are met.
Can Siblings Be Co-Applicants for Study Abroad Loans?
Yes, siblings can be co-applicants in most cases. Banks and NBFCs allow this if the sibling:
- Is financially independent (salaried or self-employed).
- Has a good credit history (preferably 700+ CIBIL score).
- Can provide stable income proof, like salary slips or ITRs.
For Fall ’25 study abroad aspirants, choosing a sibling as co-applicant can be particularly helpful if parents are retired, self-employed, or unable to meet the lender’s financial benchmarks.
Advantages of Having a Sibling Co-Applicant
1. Younger Age and Stronger Credit Profile
Siblings, being younger, often have active income streams and better creditworthiness, which improves loan approval chances.
2. Flexibility for Parents
If parents have multiple loans or retirement status, having a sibling as co-applicant eases financial pressure.
3. Stronger Approval for Unsecured Loans
For unsecured education loans (up to ₹40 lakhs), a sibling with a strong income profile can make the process faster.
Challenges to Keep in Mind
While the sibling co-applicant for study abroad loan route is viable, it comes with challenges:
- Income Requirement: Many lenders require at least ₹30,000–₹50,000 monthly income.
- Credit Score: Any defaults on the sibling’s credit history can affect approval.
- Relationship Proof: Lenders may ask for documents like family certificates or birth records.
- Shared Responsibility: Any delay in repayment could strain personal and financial relationships.
Documentation Required for Sibling Co-Applicants
Banks and NBFCs typically ask for:
- Identity proof (PAN, Aadhaar).
- Relationship proof (birth certificates, family card).
- Income proof (salary slips, ITR for last 2–3 years, bank statements).
- Employment verification (HR letter or business registration for self-employed).
- Credit report (CIBIL or Experian score).
Which Lenders Accept Siblings as Co-Applicants?
Public Sector Banks
Banks like SBI and Union Bank of India allow siblings as co-applicants, but they may prefer secured loans (collateral-backed) in such cases.
Private Banks
Private banks like ICICI or Axis allow sibling co-applicants for unsecured loans if the income and credit criteria are met.
NBFCs
NBFCs like Ascent, Credila, Avanse, and InCred are more flexible and focus on the sibling’s financial health rather than their relationship to the student.
How Loan Fest Can Help Students with Sibling Co-Applicants
When comparing lenders for a sibling co-applicant for study abroad loan, Loan Fest by Lorien Finance offers unmatched benefits:
- Compare 17+ global and Indian lenders in one place.
- Exclusive interest rates starting at 3.39%.*
- Attractive rewards like MacBooks, iPhones, and travel kits worth ₹20,000.
- Assured rewards of ₹2,000 for every successful loan disbursement.
By participating in Loan Fest, students can directly check which lenders accept siblings as co-applicants and get pre-approved offers tailored to their profile.
Tips to Maximize Loan Approval with a Sibling Co-Applicant
- Check Credit Scores Early: Ensure the sibling’s credit score is at least 700.
- Showcase Savings or Assets: Highlight FDs, mutual funds, or rental income.
- Add a Secondary Co-Applicant: Combine the financial strength of parents and siblings for better approval odds.
- Prepare All Documents: Incomplete documentation is the #1 reason for delays.
- Get Expert Guidance: Lorien Finance’s advisors know which lenders are most flexible with sibling co-applicants.
Checklist for Fall ’25 Aspirants
- Do you have your sibling’s latest ITR and bank statements?
- Have you shortlisted lenders that accept sibling co-applicants?
- Is the co-applicant’s credit score healthy?
- Have you registered for Loan Fest for lender comparison and rewards?
Choosing a sibling co-applicant for study abroad loan can be a smart move if parents are unable to take on the responsibility. With the right documentation and lender selection, approval can be just as smooth as with a parent co-applicant. Lorien Finance simplifies this journey with expert guidance and events like Loan Fest, ensuring Fall ’25 students don’t just get loans, but the best deals and rewards while at it.
FAQs
Can my sibling be the only co-applicant for my study abroad loan?
Yes, if they have sufficient income, good credit history, and meet lender eligibility.
Do NBFCs accept siblings as co-applicants for unsecured loans?
Yes, many NBFCs are flexible and approve loans based on financial strength rather than just relationship hierarchy.
What documents prove sibling relationships?
Birth certificates, family ration cards, or notarized affidavits are accepted.
Is it better to have both parent and sibling as co-applicants?
Yes, combining incomes improves approval chances, especially for high-value loans.
Can I apply during Loan Fest with my sibling as co-applicant?
Absolutely. Loan Fest helps compare lenders and find the ones most open to sibling co-applicants.