To answer your question: Is personal loan transferable? I’d like to say that in India, a personal loan is not directly transferable from one person to another like a car or property. Personal loans are unsecured and sanctioned based on an individual's income, credit score, and repayment capacity.
Therefore, banks and NBFCs usually do not allow the legal transfer of a personal loan to another individual. However, in some cases, a workaround called balance transfer or loan takeover can help achieve a similar outcome.
If you want to shift your personal loan burden to another person (like a family member or spouse), the only possible method is to have the new person apply for a fresh personal loan, use that money to repay your existing loan, and then take over the responsibility of the new loan.
This process is not a direct transfer, but a replacement via mutual agreement and approval by the bank.
Alternatively, some banks may allow co-borrower transfers or loan restructuring, but only under exceptional cases, like divorce settlements or death of the borrower subject to bank discretion.
To initiate a personal loan balance transfer to another person:
The new borrower must apply for a fresh personal loan from a bank or NBFC.
The loan amount is disbursed to close the original borrower’s loan account.
The new borrower now repays the loan with new terms and tenure.
This route requires a strong credit profile of the new borrower and involves processing fees and fresh documentation.
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Is Personal Loan Transferable?
shagun
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6 months
2025-06-17T15:06:57+00:00 2025-06-17T15:06:59+00:00Comment
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