Once you have signed a loan agreement, you may regret it shortly thereafter. If that happens you don’t have to worry. You have the right to repay your loan for a certain period.
Did you know that you can also redeem your loan earlier than planned? Below we tell you more about how to proceed if you cancel your loan or if you want to redeem it earlier.
How long is the right of withdrawal?
If you apply for a loan online and sign the loan agreement with BankID or E-identification, the loan is counted as a distance agreement. In the case of a distance agreement, a 14-day right of withdrawal always applies. Therefore, you have a 14-day right of withdrawal on the loans you applied for online.
The right of withdrawal applies regardless of the loan amount or term. Therefore, you can use the right of withdrawal on loans such as fast loans, SMS loans and private loans that you have applied for online.
According to the law, you have the right to cancel your distance contract within 14 days at no extra cost. This means that if you have paid a set-up fee or other administration fees, you will receive these costs back. However, you usually have to pay the interest on the loan amount as long as you have the money at your disposal.
However, some lenders will not charge the interest rate if you repay the entire amount within a certain time from the day you invoke your right of withdrawal.
How to invoke your right of withdrawal
The right of withdrawal of 14 days starts to run on the day you get access to all information about the loan and all loan terms. In practice, this is the day you sign the loan, whether you sign the loan letter or sign the loan with E-identification or BankID.
Thus, it is not the day you get access to the money that applies.
If you want to invoke your right of withdrawal, you can do so both orally and in writing. For security’s sake, it is best to do so in writing and then with proof of the day you feel the message. Then the lender cannot claim that you did not invoke your right of withdrawal.
An email is both legally correct and timestamped and therefore works as well as a method.
Then you have 30 days to repay the entire loan amount, including the interest to be paid. Since you usually have to pay the interest while you have the money, it is best to repay the money as soon as possible. Did you know that you can borrow money without interest from some lenders?
Redeem your loan earlier
If you were to improve your financial situation, you can redeem your loan earlier than planned. All loans can be paid off before the term expires and in most cases you can redeem a loan in advance at no extra cost.
This applies to most private loans, quick loans, SMS loans and unbound mortgages. Here you can choose to redeem the entire loan or only redeem part of it. If you want to redeem some of your unbound loan, it is usually quite easy. If you pay via invoice, you only have to pay more than the invoiced amount.
For security reasons, you should always contact the lender before paying more than the invoice says to make sure you are doing the right thing. For auto-giro payments, you can make an extra payment by using the bank giro number and a specific OCR number. Sometimes this information is displayed on your auto giro avi, but sometimes you have to contact the lender to get it.
If you want to redeem the entire loan in advance, you must first contact the lender. You will then receive a final invoice showing the repayment amount including the interest until the due date. Make sure to pay the invoice on time, otherwise you can get an invoice with the interest for the delayed days.
To redeem the bond
It is not common to redeem the entire mortgage in advance, but it may be relevant if you sell the home or find a new mortgage with lower interest rates.
If your mortgage is tied up, the process of redeeming the loan is in practice the same as with unbound loans, but you have to pay a fee called interest rate compensation to the bank.