1. Right of withdrawal for credit agreements
Anyone who takes out a loan online generally has the right to revoke this contract within a set period of time. According to the legal regulations applicable in Germany, the cancellation period is usually 14 days. This period begins as soon as the borrower has received both the contract and all relevant contract information, such as the effective annual interest rate, the amount of the monthly installments and the total burden of the loan. Cancellation is possible without giving reasons, which means that there are no specific requirements that must be met in order to cancel the contract.
However, it is important that the Cancellation policy properly and completely. If this is missing or incorrect, the cancellation period does not begin and the borrower could possibly cancel the contract even after the 14 days.
2. This is how the revocation is carried out
There is no specific form required to revoke a loan. Nevertheless, it is advisable to declare the revocation in writing – for example by letter or email – and to verifiably ensure access to the lender. The declaration does not have to contain any justification; The only decisive factor is that the consumer clearly states that they want to revoke the loan.
If the loan has already been paid out, the right of withdrawal still remains.
The borrower is then obliged to repay the loan amount to the credit institution within 30 days. In addition, interest may be due for the period in which the amount has already been paid out, which must also be refunded. However, it is important to know that no additional fees or hidden costs may be charged if the contract is canceled properly.
3. Returns after cancellation
If a credit agreement has been revoked, the contract will be reversed. This means that the borrower repays the money he has already received and the lender waives the contractually agreed interest. However, interest can be charged for the period in which the money was available, as long as this is clearly defined in the contract. However, processing fees, closing costs or other costs directly related to the contract must be fully reimbursed. These may not be withheld, even if the borrower exercises his right of cancellation.
To give an example: Should a Instant loan from creditSUN or another lender and the borrower decides to cancel the contract within the cancellation period, the amount will be fully refunded by the provider after the customer has repaid the loan. The revocation is therefore easy and without additional hurdles.
4. Special features of different types of loans
However, there are some types of credit for which the right of withdrawal does not apply without restriction. There may be exceptions, particularly when it comes to real estate financing or loans that are related to the purchase of land or property. These types of financing are often protected by specific regulations that prevent such contracts from being easily revoked. Here it is worth taking a close look at the contract documents or, if necessary, obtaining legal advice in order to take possible restrictions or special features into account.
Other rules may also apply to government-sponsored loans such as the KfW student loan or certain funding programs. In these cases, it is particularly important to check the exact contractual conditions, as the right of withdrawal may be limited or non-existent in certain cases.
5. Common reasons for revocation
There are many reasons why borrowers choose to borrow from their Right of withdrawal to make use of. One of the most common reasons is that more favorable conditions are found with another provider after the contract has been concluded. A sudden change in the financial situation can also mean that the loan taken out no longer makes sense. Some borrowers also use the cancellation period to reflect on a quick decision and re-evaluate the contract.
Another common reason can be that borrowers did not understand the contract sufficiently or were not sufficiently informed about certain conditions such as variable interest rates or special repayment regulations. In such cases, revocation allows you to inform yourself at your leisure and possibly look for alternatives.
6. Conclusion: Caution and planning protect against revocation
The right of withdrawal offers important protection for borrowers who take out a loan online. It makes it possible to withdraw from the contract within a short period of time if there is uncertainty after the contract has been concluded or if better alternatives are found. Nevertheless, taking out a loan should always be carefully considered. If you obtain comprehensive information in advance and carefully compare the conditions of the various providers, you can avoid many subsequent problems.
Especially with online loans, which often promise quick approvals and payouts, it is important to check the contract and the conditions carefully. In this way, unnecessary cancellations can be avoided and the loan can be used optimally. Ultimately, the ability to revoke a loan is a security measure that protects borrowers from making rash decisions. However, it should be seen as a last resort – because if you plan well, you save yourself the hassle of revoking it.
