What is the difference between co-applicant & co-borrower in a loan?

A co-borrower is someone who takes a loan along with another person and is equally responsible for repaying it. Meanwhile, a co-applicant is a person whose income or financial profile is considered during loan evaluation. For example, a young homebuyer may add a parent as a co-applicant. The co-applicant’s exact role depends on the terms mentioned in the loan agreement.