Loan assignment

Assigning a loan means the lender changes but all the obligations relating to the loan remain the same.

When assigning credit, the bank transfers the claim on the debt to another person or entity, and the obligations remain in effect.

The borrower’s consent is not required for a debt to be assigned as the borrower is not involved in the transaction. The bank with which the borrower took out the loan (assignor) and the bank to which subsequent payments have to be made (assignee) agree the transfer of the loan between themselves.

As a customer, you must be informed about the assignment so you can make your payments to the new creditor.