Loan Approved, But Changed Your Mind? Here's What to Know
Yes — you can cancel a loan even after it's approved, but only before it’s disbursed. Once the loan amount is credited to your account, it becomes legally binding with terms and interest.
Here’s how it works, and what you should be careful about.
When Can You Cancel a Loan?
Before Disbursal – Allowed
You can freely cancel the loan before the money reaches your bank account.
No interest is charged as the loan hasn’t started.
After Disbursal – Tricky
Once disbursed, the loan becomes active. You’ll need to repay the full principal (and maybe interest for a few days), along with processing fees or penalties.
Loan Cancellation Process (Step-by-Step)
Contact your lender (or Vizzve) immediately
Submit a written request/email stating your intent to cancel
If applicable, reject the loan agreement digitally or physically
Ensure you haven't used the funds (if already disbursed)
Wait for confirmation and refund of charges (if eligible)
Possible Charges During Loan Cancellation
Processing Fees: Non-refundable with most lenders
Stamp Duty: Incurred during documentation (non-refundable)
Prepayment Penalty: If disbursed and repaid quickly, a small penalty may apply
GST: On processing fees, not refunded
💡 With Vizzve Finance, you’ll get clear visibility on refund policies and cancellation clauses upfront — no last-minute surprises.
Vizzve Finance Tips Before Cancelling a Loan
✅ Read the loan agreement carefully before signing
✅ Ask about cancellation windows and charges
✅ Only approve disbursal when you're 100% sure
✅ Use Vizzve’s support team to understand implications clearly
Final Takeaway
Cancelling a loan after approval is possible, but only before disbursal. Post-disbursal, it becomes a formal contract — and canceling it might cost you.
Choose smarter with Vizzve Finance, where transparent loan offers, cancellation policies, and expert guidance help you stay in control of your finances — always.
Frequently Asked Questions (FAQs)
Q1. Can I cancel a personal loan after it’s approved but before disbursal?
Yes, cancellation is allowed at this stage with no EMI burden.
Q2. Will I have to pay any fees if I cancel?
You might lose the processing fee or stamp duty, depending on the lender.
Q3. What if the loan is already credited to my account?
Then it must be closed as a foreclosure or prepayment, and charges may apply.
Q4. How long does it take to cancel a loan?
Usually 1–3 working days, depending on your lender’s process.
Q5. Can Vizzve help with cancelling a loan?
Absolutely. Our team will coordinate with the lender and guide you through the cancellation or prepayment process.
Published on : 22nd July
Published by : SMITA
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