Can personal loan be transferred to another person? Know what the rules are

Personal Loan: Personal loan is given on the basis of agreement between the bank and the individual. For this reason it generally cannot be transferred.

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It is quite easy to take a personal loan today. If your credit score is good then any government or private bank will easily give you a personal loan. But while taking a personal loan, many times this question arises in the minds of people whether the personal loan can be transferred to another person or not.

Can personal loan be transferred?

• Generally, a personal loan cannot be transferred to another person. There are many reasons behind this, let us know.
• The personal loan agreement is made between the bank and the individual taking the loan. For this reason it is non-transferable.
• While giving a personal loan, the bank checks the person’s credit score and income etc. On this basis the loan is approved.

Some companies offer loan transfer

Personal loan transfer is offered by some banks and NBFC companies. It is also known as Loan Assumption. However, this happens only then. When the person taking the loan is unable to repay the loan. But there are many conditions in this. For this reason, it is considered better to choose some other easier option.

Follow these tips to manage personal loan

• If you are facing difficulties in managing your personal loan then you should adopt these tips.
• You should get all your debts transferred to one place.
• You can reduce the EMI by talking to the bank manager.
• Apart from this, avoid taking any new personal loan at such times.

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