How to withdraw from the loan agreement?

You took out a loan, but the situation has changed and you no longer need it? You signed the contract, but only after that did you realize how unfavorable its terms are? Or maybe you want to know "in advance" - to know what to do when you find yourself in such a situation? Are you wondering how to withdraw from the loan agreement?

In the article below, we will tell you everything about the rules for withdrawing from the loan - what are your rights and what you cannot do.

The right to withdraw from the loan agreement

Few people realize that they can legally withdraw from the contract within a certain period of time. According to consumer law (Article 53 (1)), each consumer has the right to withdraw from the loan agreement within 14 days from the date of the agreement . So if you've made an impulsive and ill-considered decision, you've got a chance to fix it. You do not have to provide the decision to withdraw from the loan. However, remember to keep the 14-day deadline - after exceeding it, you will have to pay back the loan with commission and interest.


How to withdraw from the loan agreement?

Have you made the decision to resign from the loan agreement? If the 14-day deadline has not expired, the entire procedure will be to return the amount borrowed by you. You will not incur any additional costs.

Check what you need to do step by step to withdraw from the loan agreement:

  1. Fill in the declaration of withdrawal from the loan agreement - each loan company has its own template of the declaration of withdrawal from the loan agreement. Complete this statement and send it to the lender. It is worth using two methods here: send the statement by e-mail and by traditional mail. If your e-mail arrives faster, you will probably complete the formalities sooner.
    Remember: if you cannot find such a statement on the website, be sure to contact the lender as soon as possible! Be sure to include the contract template with this statement!

  2. Return the amount received - when the lender receives your application for withdrawal from the loan agreement, you will have to return the loan amount received. According to the Consumer Credit Act, you will have to add interest to the amount received from the lender for the period from the date of payment of the loan to the date of its repayment. Contact the lender to provide you with the exact amount you will have to pay.
    You have 30 days to return the money from the date of submitting the statement.

  3. If you exceed the 30-day period, your statement will be considered invalid . Accordingly, as we wrote above, you will have to pay off the full loan, including all its costs. The sooner you decide to give up a loan or credit, the better it is for you.

Do not hesitate to withdraw from the contract

As you can see, concluding an unfavorable loan agreement is not the end of the world yet! You can cancel it at any time, as long as you scrupulously follow the deadlines.

For the future, however, we advise you to read and analyze loan agreements carefully. Thanks to this, you will avoid unnecessary stress.

1500 $
min. $ 100 max. $ 25,000
24 months
min. 3 months max. 60 months

Installment from: $ 100 *

APRC from 0.00 % *