Learning how to transfer home loan from one person to another isn’t as simple as signing a piece of paper. Banks usually treat it as a new loan or loan takeover rather than a direct name change.
How to Transfer Home Loan to Another Person?
Most lenders require the outstanding loan to be closed first and then re-issued under the new borrower’s profile based on their eligibility. This means the person taking over the loan must meet the bank’s credit, income and valuation criteria.
If the property owner wants to pass the loan to someone else (e.g., a buyer in a property sale, a family member by inheritance or gift), the ownership of the property must legally transfer to that person first.
Banks will not change the loan name without a sale deed or legal transfer since home loans are tied to the collateral property.
Once ownership is transferred, the new person must apply for a fresh home loan or takeover.
The lender assesses the applicant’s income and employment stability, credit score (CIBIL), repayment capacity, and property valuation and clear title
If approved, the bank will close the seller/previous borrower’s loan account and issue a loan in the new borrower’s name, effectively transferring the financial responsibility.
In resale cases or refinance situations, the new buyer or transferee may opt for a home loan takeover or balance transfer to the same or new lender at better terms. This is essentially a new loan that pays off the existing one.
Banks must consent to the transfer because they originally sanctioned the loan based on the initial borrower’s profile. They are not obliged to approve a takeover if the new applicant does not meet criteria.
Execute legal sale/ownership transfer to the new person. Apply for loan takeover/new loan with current/new lender. Submit income, ID, property and title documents. Obtain NOC and foreclosure letter from the existing lender. Complete the loan closure and disbursement under the new loan.
The loan does not automatically shift just by changing names or paying down amounts; proper lender approval and property title transfer are essential. Banks may allow porting if you sell and buy another property, but conditions apply.
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How to Transfer a Home Loan to Another Person?
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2026-02-17T09:52:33+00:00 2026-02-17T09:52:37+00:00Comment
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