Can You Cancel an Instant Loan After Approval? Here’s What Happens

Instant loans have become a popular option nowadays. With just a few clicks, you can get funds directly deposited into your bank account with no document, and no long waiting lines. 

But what if you change your mind after the instant loan has been approved? Can you cancel an instant loan after being approved? And if you can, what happens next?

Let’s break it down.

Can You Cancel an Instant Loan After Approval?

Yes, you can, but it depends on when you take action.

If you have been approved for the loan but the funds have yet to reach your account, cancelling is generally a very straightforward process. Most digital lenders let users cancel their loan application at this stage, especially if you do it quickly via the app or support team.

However, once you have received the loaned amount, it becomes a bit more complicated.

What Happens If the Loan Is Already Disbursed?

Once the loan funds arrive into the bank, you are in a loan!  In this case, you can’t "cancel".  You are going to "pay back" or "close".

This is what is usually done,

• You will likely be requested to pay the full loan back immediately.

• It will still be 100% digital and not difficult at all, but repayment is your obligation now.

• Even if it does not cost you anything, you will need to check the lenders' pre-closure terms. 

• There is a possibility that this little transaction can remain on your credit profile, even as much as it was a short transaction.

In short, timing is everything to cancelling.

Why Would Someone Want to Cancel an Instant Loan?

It happens more often than you may think. Some common situations include,

• You have received unexpected funds (perhaps a bonus or a little help from a friend).

• Your need for the loan was not as urgent as first thought.

• You decided to try and see where you are at financially before borrowing.

Whatever the case, you can save time and energy by simply making a decision quickly.

Who Is Eligible to Apply for Instant Loans?

Before applying, it is important to know whether you qualify under basic eligibility requirements, which usually are:

• Age 25 to 55

• Must be a salaried employee

• Must be able to complete the process on a fully digital platform

If you are qualified, you can look at instant loan applications specifically for working professionals who need flexible, on-the-go financial support.

Be a Smart Borrower

Take the time to pause before clicking "Apply." Ask yourself these questions,

• Do I need this loan today?

• Am I borrowing only the amount I need?

• Is this the right platform I want to use, in terms of ease and flexibility?

Today’s awareness of your finances ensures tomorrow’s complications are minimal. If you do end up changing your mind, the sooner you take action to cancel the loan, the easier the process will be.

Certainly, you can cancel an instant loan, but you have to be quick. After it has been disbursed, it becomes a live loan that you have to pay back. Yes, the loan process will still be an all-digital and simple process.

For the salaried professional (age 25–55) looking for a smooth and flexible borrowing experience, their best option is Rupee112. Apply now with Rupee112, up to ₹100,000, no collateral, and 100% digital.