# Why is the loan paid out to my cosigner's bank account?

URL: https://togetherloans.com/faq/why-does-the-loan-go-into-my-cosigners-bank-account
Updated: 2026-11-02

Why loan paid to cosigner: Prevents fraud and ensures cosigner understands their responsibility. Cosigner then transfers funds to borrower safely.

We pay the money into the cosigner's bank account to protect them against fraud. This way we can make sure they're aware of the loan.

Your cosigner can then either transfer the money to you, or withdraw the funds for you as cash.