Process & terms

Can I cancel a personal loan after accepting?

Short answer

Sometimes, but the window is short. Unsecured personal loans typically don't have a federal right of rescission (only secured loans against your primary residence do). Some lenders offer a 1-3 business day cancellation window in their loan agreement. After that, you can prepay (pay it off immediately) instead.

Context

Federal Truth in Lending Act rescission rights apply to home-equity loans (3 business days), not to unsecured personal loans. For personal loans, your contractual right to cancel depends entirely on the loan agreement language.

Some lenders include a 'cooling-off' period of 1-3 business days during which you can cancel without consequence. After that window closes (or if the agreement doesn't include one), your option is to receive the funds and immediately prepay the loan. Most reputable lenders don't charge prepayment penalties, so the cost is just the few days of interest accrued before payoff.

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

Glossary: Prepayment penalty

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