Policy ID: PCI/POL/24/2026-27 • Version 1.0 Owner: Operations / Credit • Approver: Board of Directors Sources: CF, RBC • Review: Annual / regulatory change
Purpose and application
Pre-disbursement withdrawal, digital cooling-off exit and post-disbursement closure.
1. Request and identification:- Accept a dated cancellation request through authenticated branch/digital channels. Verify borrower, loan, disbursement stage and pending payment instructions. Record acknowledgement, reason and decision owner; staff shall not force a borrower to take an unwanted loan.
2. Before disbursement:- Block pending disbursement and inform bank/operations promptly. Close unused sanction after approval and reconcile any deductions. Refund unused or incorrectly collected sums; retain only lawful, disclosed and actually applicable charges.
3. Digital cooling-off:- Give an explicit digital-loan exit option for a Board-approved period of at least one day. The borrower pays principal and proportionate APR without penalty. A reasonable one- time processing fee may be retained only if upfront disclosed in KFS.
4. After disbursement:- Beyond applicable cooling-off, treat the request as prepayment/foreclosure under the contract and RBI restrictions, not automatic erasure of interest. Provide an itemized statement; do not levy prohibited prepayment charges or backdate closure.
5. Closure and reporting:- After cleared dues, stop mandates appropriately, issue closure confirmation and accurately update credit bureaus. Return security/documents within applicable time and process refunds under the Refund Policy. Report exceptions monthly and review annually.
Source codes are linked to the Reference Register. Read with the common implementation controls and relevant annexes. Applicable law and RBI Directions prevail.