Personal Loan Cooling-Off Period Explained

A personal loan is a type of loan that people can get quickly when they need money for emergencies.

Sometimes, after getting the loan, the emergency might not be there anymore, or it might be postponed.

In such cases, the borrower can cancel the loan within a certain time period called the cooling-off period.

This period is different for different banks and usually ranges from 3 to 15 days.

During this time, some banks do not charge any fees for cancellation, but most banks will not refund the processing fee.

If the cooling-off period is over, the borrower might have to pay a cancellation fee.

The borrower needs to fill out a cancellation form, repay the loan amount, and get an acknowledgment.

Once the loan is cancelled, the bank will send a confirmation.