As compared to previous year, there is an increase in the application of Personal Loan. However, many borrowers cancel their loan request even after receiving approval owing to a plethora of reasons.
Wondering if you can cancel your Personal Loan application? The answer is yes. Read on to learn about the reasons behind Personal Loan cancellations and their effect on your credit score.
Following are some of the prominent reasons why borrowers choose to cancel a Personal Loan and terminate the agreement:
Cancelling a Personal Loan application can have a prominent effect on your credit score. This impact varies with the stage of application of where you are at the time of cancelling your loan.
The effects of Personal Loan cancellation on CIBIL score are as follows:
If you cancel your credit request after sending the application but before the lender requests your credit report, there is no impact on your credit score.
You have the flexibility of cancelling your loan request even before disbursement of the credit amount. Since the lender has already made an inquiry by then, it would not reduce your credit score any further.
You also have the option to cancel your loan request after receiving the credit amount. However, it must be done within the cooling-off period mentioned in the loan agreement. Beyond this period, your loan cancellation request will not be processed.
Apart from loan cancellation, several other factors can negatively affect your credit score. These include:
Once you are aware of the factors negatively affecting your credit score, make sure that you take necessary measures to avoid them. As soon as your credit score improves, you can reapply for a Personal Loan to access funds instantly:
Also Read - What is Personal Loan? Things You Should Know
If you have made up your mind to reapply for a Personal Loan, you should keep certain points in mind:
Also Read - Tracking your Personal Loan Application Status
Instead of going for Personal Loan cancellations, make sure to go for a thorough comparison of lenders and a careful analysis of your financial health. This minimises its negative impact on your credit score. Otherwise, it would take you a long duration and strict financial discipline to improve your credit score and stand eligible for a Personal Loan.
Unlock your dreams with a Personal Loan from Poonawalla Fincorp.
We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Personal Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply
Why do individuals, firms and businesses choose to borrow money from lenders? This is all because we need the money for all the situations.
As per capita income increased in India, people started spending more on cars. If you are planning to take a loan to buy a new car, then you need to approach the lending market for a suitable car loan.
A medical emergency can happen at any time. Sometimes paying a medical bill right away is not easy. This is a problem even when you have medical insurance. This may be because the plan you have will not be able to recover all the expenses