Life happens. Maybe you're going through a major change, or maybe someone else has offered to take over your debt. Either way, you might be wondering: Can I transfer my personal loan to someone else?
It’s a fair question - and while it’s possible in some situations, it’s not always simple. Here’s what you need to know.
First: What Does “Transferring a Loan” Really Mean?
When people talk about transferring a loan, they usually mean moving the responsibility for the loan - including payments, interest, and the remaining balance - from one person to another.
It sounds straightforward, but because personal loans are unsecured (meaning there’s no collateral like a house or car), lenders are extra cautious about who they lend to. That makes transfers tricky.
Can You Legally Transfer a Personal Loan?
In most cases, you can’t directly transfer a personal loan to someone else. That’s because the loan was approved based on your credit history, income, and financial profile - not someone else’s.
However, there are a couple of workarounds that might help if you're in a tight spot.
1. Loan Refinancing by the New Borrower
If the person who wants to take over your loan has solid credit, they might be able to apply for a new loan in their name to pay off your existing balance. This is often called a refinance or debt consolidation loan.
How it works:
You apply to have the balance paid off.
They get approved for a new loan and use those funds to pay off yours.
After that, you’re no longer responsible for the original loan.
Important: Until their new loan is approved and your original loan is paid off, you’re still on the hook for payments.
2. Co-Signing or Joint Loan Options
Some lenders allow joint personal loans or co-signers, which can help share the responsibility—but those options usually have to be set up at the beginning of the loan.
Once a loan is active, adding or removing someone isn’t always allowed. Still, it’s worth asking your lender about their specific policies.
3. Contact Your Lender Directly
Even if it’s uncommon, some lenders may allow a loan transfer or account modification under special circumstances—like divorce, financial hardship, or estate matters.
If you're considering this route:
Call your lender directly.
Explain your situation honestly.
Ask if there’s a formal process for loan assumption or transfer.
What If You Can’t Transfer It?
If transferring the loan isn’t possible, consider these options:
Make a new plan: Adjust your budget to stay on top of payments.
Ask about deferment: Some lenders offer temporary relief if you're facing hardship.
Explore debt consolidation: You may qualify for a lower-interest loan to simplify payments.
Talk to AMG Finance: We’re here to help you understand your options and move forward with confidence.
Let’s Talk Through Your Options
While personal loan transfers aren't usually straightforward, you do have options. Whether you're trying to reduce your monthly payments, consolidate your debt, or simply figure out the next best step - AMG Finance is here to help.
Not sure what to do next? Let’s look at the big picture together.
