Is it possible to refuse and a sample application

If the client decides to voluntarily refuse loans at the registration stage, then he can do this at any time before receiving the funds. Approved applications do not impose any obligations. No money – no problems and questions.

But after receiving funds, you can cancel a consumer loan only within a certain period – up to 14 days. The period for canceling targeted loans (for example, a mortgage or car loan) is longer – up to 30 days.

However, it is worth considering that the bank has every right to request interest for the use of funds for this period.

When you can’t refuse a loan

According to the law, you cannot refuse a loan after the expiration of the term: 14 days for a consumer loan, 30 days for a target loan. But you can go the other way and repay the loan early, returning the full amount with interest.

Imagine that a woman contacts a lawyer. She took out a consumer loan to pay for her son’s wedding (450 thousand at 20% per annum). However, the celebration was canceled because the newlyweds separated. The money was of no use.

The woman was mistakenly confident that she would return the funds to the bank without any problems, paying the minimum interest. However, by that time more than a month had passed since the date of receipt of the borrowed funds.

The client contacted the bank, but, of course, she was refused. Then the woman turned to a lawyer to help her restore justice. The lawyer explained that in this case, the bank, by law, has every right not to agree to refuse to receive a loan, since more than 14 days have passed.

In this case, the woman had several options: she could repay the loan according to the terms of the agreement or repay it early.

At this stage, no one owes anyone anything. If the bank has approved the application, but the client changes his mind, then he may or may not inform about his decision. The credit institution has no right to apply any sanctions.

However, such a refusal may negatively affect the relationship with the bank in the future. And it is impossible to predict the reaction: the organization can put the client on an internal blacklist, or it can “forgive” it by re-approving the loan.

This is what a man did when he found himself in an unpleasant situation. He worked as a manager and took out a loan of 300 thousand at 19.5% per annum to go on a short vacation with his family. The client received approval of the application.

However, the next day, his close relative had an accident and ended up in the hospital. The man decided not to fly away, but to stay in Russia to care for the victim. Consequently, the loan lost its relevance.

The client called the bank and explained the situation, as he planned to contact this bank in the future. A year later, he was re-approved for the loan without any problems.

The borrower can refuse the loan after signing the agreement. Yes, this is not the most pleasant and simple procedure, but it must be completed.

How to act:

1. Submit an application for refusal of a consumer loan to the bank within 14 days after receiving it. Get a positive response.

2. Transfer credit money, having previously learned how to do this (cash or online).

3. You may be required to pay interest on the use of loan funds. The bank has the right to do this.

4. Get a certificate of no debt.

5. You cannot cancel the loan after 14 days. But it can be repaid early.

For targeted loans (mortgages, car loans, and others), the rules will be slightly different. What the borrower must do:

1. Submit a loan waiver application to the bank within 30 days after receiving it. Get a positive response.

2. An apartment with ownership rights cannot be returned. Therefore, it will need to be sold. The same steps will be required to return funds on a car loan.

3. List loan funds and interest.

4. Get a certificate of no debt.

The nuances when filling out an application may vary, but, as a rule, you need to indicate:

• name and address of the credit institution;

• Client’s full name;

• contact details;

• number and date of conclusion of the loan agreement;

• amount and interest rate.

It is better to find out all the rules for filling out an application at the bank where the loan was approved in order to save time and nerves.

This is what a loan waiver application looks like. Source: ru.myfin.by

The application should refer to the borrower’s right to refuse a consumer loan within 14 days. You can also immediately request a certificate of no debt in your application.

Any client’s refusal of a loan will necessarily be reflected in the credit history. In the future, banks will see this information and will not be able to ignore it. But if the situation with the refusal was a one-time thing and ended without a trial, then you can take out a new loan without any problems.

However, a particular bank may well put a refusing client on an unofficial blacklist, which the borrower will never know about. To avoid problems, you should not hide from bank employees, comply with the terms of the agreement and act within the law.

• The easiest way is to cancel the loan before signing the contract. An approved application does not impose obligations on the client.

• After receiving funds, you can cancel the loan within 14 days (from a consumer loan) or within 30 days (from a target loan).

• To cancel a loan after signing the agreement:

1. you need to write an application based on the type of loan;

2. transfer money and interest on the loan;

3. obtain confirmation of the absence of debt.

• Refusal of a loan even at the stage of an approved application will be reflected in your credit history.

• After 14 or 30 days have expired, you can get rid of the loan by paying it off early.

Cover photo: Freepik