A loan marked as “Cancelled” means that the borrower decided to withdraw the loan request before it was approved or processed. This usually happens when:
- The user changes their mind.
- They find they no longer need the loan.
- They realize they made a mistake in the application.
- They decide to explore other financing options.
The cancellation occurs while the loan is still in a pending state—before it is approved, reviewed, or disbursed.
Read further: Understanding loan statuses
What happens after a loan is cancelled?
Once a loan is set to “Cancelled”, the request is closed and will not be processed further. The user would need to submit a new loan request if they wish to proceed again in the future. No credit checks or approvals happen for cancelled loans, and there are usually no penalties for cancellation—especially if done before processing.
Also read: What investors want to see before they fund your loan startup