Archive · 20 Nov 2025
Personal Loan Cancellation: Cooling-Off Period & Process
When you take a personal loan, you have some time (usually 3-15 days) to change your mind and cancel it without any fees.
This is called the 'cooling-off period'.
You can cancel for many reasons, like if you don't need the money anymore or found a better loan deal.
To cancel, you just need to tell the bank and return the money you borrowed.
Your credit score might be slightly affected, but it should go back to normal quickly.
Cooling-off period allows borrowers to review and cancel personal loans within a specified time frame (3-15 days)
Reasons for cancellation include changed circumstances, better loan offers, or financial difficulties
Cancellation process involves checking the loan agreement, informing the bank, returning the money, and confirming cancellation
Most banks don't charge fees for cancellation during the cooling-off period, but charges may apply afterward
Cancellation may have a minimal impact on credit score, especially if done during the cooling-off period
- Who
- Borrowers
- What
- Can cancel personal loans
- When
- During the cooling-off period (3-15 days)
- Where
- At the bank or online
- Why
- To review and change their minds about the loan
Cancel the loan
Keep the loan
Changed circumstances
Cancel the loan
Cancel the loan if you no longer need the money or can't afford the repayments
Keep the loan
Keep the loan if you still need the money or can manage the repayments
- Cooling-off period
- 3-15 days after loan disbursement
- Cancellation process
- Check agreement, inform bank, return money, confirm cancellation
- Fees for cancellation
- None during cooling-off period, may apply afterward
- Impact on credit score
- Minimal if cancelled during cooling-off period