Applying for a personal loan is a big financial decision — and sometimes, borrowers realize they need a moment to reconsider.
That’s where the cooling-off period comes in.
This period allows borrowers a short window after loan approval to review, reconsider, or even cancel the loan — without penalty.
Let’s understand how this works and why Vizzve Finance recommends every borrower to know their rights before signing the loan agreement.
What Is a Cooling-off Period?
A cooling-off period is the timeframe (usually 1 to 15 days) after your loan is approved or sanctioned, during which you can cancel or modify the loan without incurring extra charges.
It acts as a borrower protection clause, giving you flexibility if you:
Change your mind about the loan amount,
Find a better offer elsewhere, or
Feel uncertain about repayment obligations.
How Long Is the Cooling-off Period?
The duration depends on the lender’s policy or RBI guidelines.
Typically, it’s between 48 hours and 15 days from the loan disbursal or agreement signing date.
Some digital lending platforms and NBFCs allow online cancellation within a fixed period — ensuring hassle-free withdrawal before EMI commitments begin.
Example:
Suppose you took a ₹1 lakh personal loan and later realized the interest rate is too high.
If your lender offers a 7-day cooling-off period, you can cancel the loan and return the principal — without paying extra charges.
Why the Cooling-off Period Matters
Prevents Borrower Regret:
Gives you time to reassess your decision.
Encourages Responsible Borrowing:
You can compare offers and choose the best loan for your needs.
Reduces Financial Pressure:
Helps avoid long-term obligations you’re unsure about.
Ensures Transparency:
Promotes trust between lender and borrower.
How Vizzve Finance Helps Borrowers:
At Vizzve Finance, we prioritize borrower clarity and convenience.
Through our platform, you can:
✅ Compare interest rates and EMIs from top lenders.
✅ Understand all loan terms before approval.
✅ Learn about cancellation and refund policies in advance.
Transparency first — always.
Key Points to Remember:
Check if your lender provides a cooling-off clause.
Cancel only within the allowed time.
Refund any disbursed amount promptly to avoid charges.
Keep all communication in written form (email/SMS confirmation).
Conclusion:
The cooling-off period is your right to rethink your financial decision.
Before signing any loan agreement, read the fine print — and partner with trusted platforms like Vizzve Finance to make informed choices.
💡 Vizzve Finance Tip: Always review your loan terms — even after approval — because smart borrowing starts with awareness.
❓ FAQs
1. Can I cancel my personal loan after it’s approved?
Yes, during the cooling-off period, you can cancel your loan without penalty.
2. Is the cooling-off period same for all lenders?
No, it varies by lender — usually 2 to 15 days.
3. What happens if I cancel after the period ends?
You may need to pay cancellation or pre-closure charges.
4. Does Vizzve Finance offer a cooling-off period?
Vizzve Finance connects you with lenders who follow transparent, borrower-friendly policies.
Published on : 3rd November
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed