Once a loan has been disbursed, cancellation is generally not possible. Once the funds have been released to the borrower, they are expected to repay the loan according to the terms and conditions agreed upon in the loan agreement.
However, in some cases, it may be possible to cancel a loan after disbursement if certain conditions are met. For example, if there was an error in the loan disbursement process, such as the wrong amount being disbursed, the lender may be willing to cancel the loan and start the process over.
In some cases, borrowers may also be able to cancel a loan within a certain period of time after disbursement, known as the "right of rescission." This right is typically only available for certain types of loans, such as home equity loans or refinance loans, and typically lasts for a few days after the loan funds have been disbursed.
If you are considering cancelling a loan after disbursement, it's important to review the terms and conditions of the loan agreement and speak with the lender to understand your options. It's also important to keep in mind that cancelling a loan after disbursement may have consequences, such as affecting your credit score or incurring fees or penalties.
