When pre-trained models become rapidly larger, the cost of fine-tuning on downstream tasks steadily increases, too. To economically fine-tune these models, parameter-efficient transfer learning (PETL) is proposed, which only tunes a tiny subset of trainable parameters to efficiently learn quality representations. However, current PETL methods are facing the dilemma that during training the GPU memory footprint is not effectively reduced as trainable parameters. PETL will likely fail, too, if the full fine-tuning encounters the out-of-GPU-memory issue. This phenomenon happens because trainable parameters from these methods are generally entangled with the backbone, such that a lot of intermediate states have to be stored in GPU memory for gradient propagation. To alleviate this problem, we introduce Disentangled Transfer Learning (DTL), which disentangles the trainable parameters from the backbone using a lightweight Compact Side Network (CSN). By progressively extracting task-specific information with a few low-rank linear mappings and appropriately adding the information back to the backbone, CSN effectively realizes knowledge transfer in various downstream tasks. We conducted extensive experiments to validate the effectiveness of our method. The proposed method not only reduces a large amount of GPU memory usage and trainable parameters, but also outperforms existing PETL methods by a significant margin in accuracy, achieving new state-of-the-art on several standard benchmarks.