@alivia Usually, it is not possible to transfer personal loans to another person. In most cases, no other person can take responsibility for your loan. However, if you have a cosigner or a guarantee who becomes responsible for your loan, it can be possible to shift the responsibility of the loan to that person. Usually, the responsibility of the personal loan applies to the co-signer or guarantor only if the primary loan borrower fails to repay the amount. It is crucial to understand that defaulting on a personal loan can impact your credit score.
In the case of mortgage loans or car loans, it is possible to transfer the loan to another person. In this case, the mortgage and credit scores of the other person will be evaluated before the loan transfer. If you become a loan defaulter, it shall reflect on your credit score for a long time. To prevent being a defaulter for personal loan repayment, the best way is to plan for a set-off clause with the lender with your loan contract.
Though the borrower can’t transfer the loan amount to someone else, the co-signer or guarantor can become liable for the unpaid balances of the loan. Cosigners are legally responsible for the personal loan repayment as the primary borrower. If the primary borrower due to some genuine problem, cannot repay the personal loan amount, then the responsibility of repayment is directly and legally transferred to the cosigner.