Overview
If you’ve recently been approved for a loan but decide that you no longer want to proceed, you may have the option to cancel the loan before funds are disbursed. However, once the loan funds have been disbursed to your account, you are responsible for repayment according to the loan terms.
This guide explains when and how you can cancel your loan, what to expect, and alternative options if cancellation is not possible.
Can You Cancel a Loan After Approval?
✔ Before Loan Disbursement: If your loan has been approved but funds have not yet been sent, you may be able to cancel it by contacting your lender immediately.
✔ After Loan Disbursement: Once the funds have been deposited into your account, the loan cannot be canceled. Instead, you will need to repay the loan in full, including any interest accrued.
💡 Tip: If your loan has already been funded, you may be able to make an immediate payment to pay off the balance early without penalties.
How to Cancel Your Loan Before Disbursement
If you decide you no longer want the loan and funds have not yet been sent, follow these steps:
- Log into Your My Account Dashboard – Check the status of your loan to see if it has been disbursed.
- Contact Your Loan Servicer Immediately – Go to the Contact Us section in your account for the correct support information.
- Request Loan Cancellation – Inform your lender that you would like to cancel your loan. If the funds have not yet been sent, they may be able to process your request.
What to Do If Your Loan Has Already Been Funded
If the loan funds have already been deposited into your account, it cannot be canceled, but you can:
✔ Pay Off the Loan in Full – Upstart loans do not have prepayment penalties, so you can repay the full loan balance at any time.
✔ Make Extra Payments – If you don’t need the loan but cannot repay it all at once, you can make additional payments to reduce interest costs.
✔ Use Funds Responsibly – If you initially borrowed the loan for one purpose but no longer need it, consider using the funds to pay down other high-interest debt or build an emergency fund.
📌 Related Articles:
- How to Schedule a Loan Payment
- Making Additional or One-Time Payments
- Understanding Loan Terms: APR, Principal, and Interest Explained