Glossary
Cooling-off Period
A short window after disbursal in which you can exit a digital loan by repaying the principal and pro-rata interest.
What it means
RBI's digital lending directions require lenders to give borrowers a cooling-off or look-up period, generally one to three days depending on tenure, during which the loan can be exited without penalty by repaying the principal and proportionate APR.
It is a consumer protection against pressure selling. It applies to loans sourced through digital lending apps and platforms; conventional loans do not carry it, but they must still provide the Key Fact Statement in advance.
Ready when you are.
Two minutes to share your requirement. One call from our credit desk with a lender shortlist. No fee, ever.