Can I Cancel a Personal Loan after Signing?

There are cases when a loan, critically needed a few days ago, ceases to be relevant. The desired product was out of stock, another source of funds was found, or a more profitable loan was issued in another bank. What to do with an already signed loan agreement if the money is no longer needed?

Is it possible to cancel a personal loan after signing the agreement?

A signed loan agreement is not a verdict yet. It is not at all necessary to get money. Moreover, you can refuse the services provided by the bank almost immediately after registration. How can this be done?

How to issue a refusal of the loan?

Whatever the situation, the client has the right to refuse the loan. Consider the two most common options.

Registration of refusal with a signed agreement and received funds. The funds has been received but has not yet been spent. This is not the most difficult case, so you can safely refuse, since every client has the right to early repayment of the loan. You need to contact the bank with a demand to return the money before the due day of the loan. Regardless of when exactly this need arose, you will have to additionally return the interest for the formal loan “use”. The bank calculates even a few seconds from the moment of getting the money as a full operating day for which it will be necessary to pay.

In this case, the terms of the loan agreement are of great importance. The bank does not have the right to completely refuse early repayment, however, it can impose a moratorium on refunds over the next 2-3 months from the date of commencement. Sometimes there are even commissions for early repayment, but this is rare.

Refusal registration when funds have not been received yet. In this case, there are two options:

wait for funds and demand early repayment, as in the case above. Contact the management of the department with a request not to issue money and simply cancel the loan agreement. The client cannot demand this, since he has already signed the agreement, but the bank can meet halfway purely humanly.

In what cases can no longer be refused?

In fact, the term “early repayment” will be used instead of refusal immediately upon receipt of funds. From that moment on, one cannot refuse, one can only accept and pay off the debt at the expense of the same money received. If they have not been spent, then there will be only a minimum overpayment, in the amount of interest per days of use.

Thus, you can refuse only until the funds deposit. All that will happen next is the early loan repayment.

How to cancel a loan after the deadline has expired?

There must be a clause in the loan agreement, according to which a person is obliged to get money before. If you simply do not appear at the bank and do not provide the details where you need to send money, the bank will not be able to issue a loan. As a result, the contract will become invalid, which is equal to a cancellation.

The legislation provides the possibility to refuse a loan within 14 days from the registration date, but in this case, you will have to return the entire amount and pay interest for this period.

How to cancel a mortgage loan?

A mortgage loan is exactly the same loan. Refusal from it is similar to the methods presented above. But the borrower must keep in mind about the down payment. For example, if this money has not yet been paid and the loan has not been received, then it will be enough to contact the bank and demand the cancellation of all agreements already reached.

The situation worsens if the money is received and the initial payment has already gone to the seller. It will be extremely problematic to cancel this agreement. If a real estate developer acted as a seller, then there are options to change the situation. Everything is more complicated with private individuals. It is almost impossible to take money from them without their consent, and you will have to go to court.

An alternative option is to sell the newly purchased apartment and use these funds to immediately pay off the debt to the bank. In this case, the amount of the initial payment will be equal to how much money the client will get for the sale, in excess of the loan amount.

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