Signing a personal loan isn't an irreversible decision the moment you sign it: consumer protection rules recognize a window to change your mind without needing to justify any reason. Knowing about this right can save you from being tied to financing that, after thinking it over, no longer convinces you.
What the right of withdrawal is
It's the consumer's right to cancel a consumer credit agreement (personal loan, consumer financing) within a set period after signing, without needing to give any reason or take on any penalty, beyond repaying the capital received and the interest accrued during the brief period the loan was in effect.
The deadline: 14 calendar days
The legal deadline to exercise this right is 14 calendar days from signing the contract (or from receiving certain mandatory contractual documentation, if it's delivered after signing). Once that period passes without notifying withdrawal, the contract remains fully in force under its agreed terms.
How to notify your withdrawal
You must notify the lender in a verifiable way (in writing, keeping a record of the date sent and received) within the stated period, following the procedure usually specified in the signed contract itself. Many lenders include a withdrawal form template along with the contractual documentation, precisely to make this process easier if the customer decides to exercise it.
The real cost of withdrawing: not entirely free
Although there's no penalty for withdrawing, you must still repay the capital you received along with the interest accrued for the period the loan was active, calculated at the agreed interest rate, from the date the funds were disbursed to the date of repayment. You must also reimburse any non-recoverable expenses the lender paid to public authorities in connection with the loan. So it isn't entirely free, though the cost is usually small given the short period typically involved.
The deadline to return the money after withdrawing
Once you've notified your withdrawal, you have a period (30 calendar days from sending the notice) to return the capital and corresponding interest to the lender, formally completing the cancellation of the transaction.
This right doesn't apply to every type of loan
The right of withdrawal on these terms applies specifically to consumer loans (personal loans, financing for consumer goods), but it does not apply in the same way to mortgage loans, which have their own separate legal framework, with other consumer protection mechanisms specific to mortgage lending.
Compare before signing, don't rely solely on withdrawal
Even though this reflection window exists, it's best to compare terms carefully before signing rather than relying on withdrawal as a safety net. Our personal loan calculator lets you compare the payment and APR of different offers before making a decision.