How do I cancel a personal loan after deal confirmation

A deal confirmation for a personal loan states that the borrower has surpassed all the verification steps required for loan approval. However, a personal loan cancellation is only possible before the amount is disbursed in your bank account. Once the loan amount is credited, it is not possible to reverse or cancel the personal loan application. So, be very clear on applying for personal loans so that cancellation doesn’t occur at any step.

Nowadays, with instant personal loan apps, loan approval and disbursement are implemented within 24 hours or a single working day. So, if you feel the need for personal loan cancellation, take the decision soon before deal confirmation and disbursement of money.

In the event of personal loan cancellation, the interest charges and cancellation charges are to be borne by the borrower. This can differ from lender to lender. The scope of personal loan cancellation entirely depends upon the lender’s loan policy and terms. Better do not apply for a personal loan when you are unsure, otherwise bear the penalty charges for loan cancellation.

A personal loan EMI calculator is a helpful tool that helps borrowers to know the EMIs in advance and take the decision accordingly. If the EMI seems heavy, you can change the variables to get a suitable EMI or postpone the decision of taking a personal loan. However, if you forcibly apply for personal loans even after the instalment looks difficult to repay, this can later call for personal loan cancellation as the borrower was not confident about the repayment since the start.

Here are certain ways borrowers can cancel a personal loan

Instant loan apps

Nowadays, instant loan apps are commonly used for personal loan applications. You can withdraw or abort the personal loan procedure at any step before approval.  Once the loan approval is received, the disbursement will follow which cannot guarantee personal loan cancellation after deal confirmation.

Customer Support

If you have applied for a long-term personal loan without instant loan apps, it is good to express your cancellation request in a precise email or a formal letter to the customer support team mentioning the purpose of cancellation and asking for its procedure.

Personal Loan Manager

If your personal loan account is managed by a personal loan manager, it is wise to get in touch with the same person to explain the reason for cancellation and perform the related formalities.

Pre-closure

This step is not possible before the deal confirmation of personal loan. A pre-closure of loan means paying off the EMIs earlier than the schedule and closing the personal loan account as soon as possible. A pre-closure procedure involves penalty charges to cover up the interest rate that the lender could not earn in EMIs.

Once you are through with the personal loan cancellation procedure, ensure you take an acknowledgment of the amount paid for deal cancellation. The financial company or the lender will also dispatch a document copy of personal loan cancellation in hand for any future reference. Once the personal loan account is closed, borrowers can move ahead with checking other investments and available credit options.