When you apply for a personal loan, you might sometimes change your mind after signing the agreement — and that’s where the Cooling-off Period comes into play. The cooling-off period is a short window (usually a few days) that allows borrowers to cancel or withdraw from a loan agreement without facing penalties or charges.
At Vizzve Finance, transparency and customer satisfaction are top priorities. We ensure that our clients fully understand their loan terms and have the freedom to reconsider their decisions during this period.
How Long is the Cooling-off Period?
The exact duration can vary depending on the lender and the regulations of your country. Generally, the cooling-off period lasts between 2 to 14 days from the date of signing the agreement or loan disbursement.
During this time, you can:
Cancel the loan agreement without paying extra fees.
Return the loan amount if it has been credited.
Avoid any long-term financial obligation.
This period acts as a safety net for borrowers, especially if you realize that the loan terms don’t suit your needs or your financial situation changes.
Why is the Cooling-off Period Important?
Consumer Protection: It gives borrowers a fair chance to back out from a loan they feel uncomfortable with.
Financial Flexibility: Sometimes, personal circumstances change — a sudden fund inflow, family help, or a better loan offer elsewhere.
Informed Decision-Making: It encourages borrowers to rethink, review, and confirm that they’re ready for the repayment commitment.
Vizzve Finance believes in responsible borrowing. We want you to feel confident, not pressured, when taking a loan.
How to Cancel a Loan During the Cooling-off Period?
If you decide to cancel your loan during this period:
Contact your lender’s customer care or branch office immediately.
Submit a written cancellation request stating your reason (optional).
Repay the amount disbursed (if already credited) within the specified time.
Keep a copy of the acknowledgment for your records.
At Vizzve Finance, our customer service team is always ready to assist you through a simple and hassle-free cancellation process.
Final Thoughts
The Cooling-off Period is an essential part of responsible lending — it ensures transparency, trust, and peace of mind for borrowers. Whether you’re applying for a personal loan for emergencies, education, or lifestyle needs, always check if your lender offers a cooling-off option.
At Vizzve Finance, we are committed to helping you make smart financial choices with clarity and confidence.
FAQs
Q1: What happens if I cancel my loan after the cooling-off period?
If you cancel after the cooling-off period, you may need to pay early termination fees as per your loan terms.
Q2: Does every lender offer a cooling-off period?
Not always. Some lenders include it voluntarily; others follow it as per regulatory norms. Always confirm before signing.
Q3: Will canceling a loan affect my credit score?
No, canceling within the cooling-off period typically does not impact your credit score.
Q4: How do I know if my loan has a cooling-off period?
Your loan agreement or sanction letter will clearly mention the duration and conditions of the cooling-off period.
Published on : 4th November
Published by : SMITA
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