The 14-day withdrawal right: cancelling a loan you just signed
Under [EU consumer credit rules](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32008L0048), transposed across the Nordic and Baltic countries, you can withdraw from a consumer credit agreement within 14 days of signing — without giving a reason and without penalty. You repay the principal plus the interest accrued for the days you held the money, nothing more.
How the right works in practice
The clock starts when the agreement is concluded (or when you receive the contractual terms, if later). Within 14 calendar days you notify the lender that you withdraw — the contract states the exact procedure and address. You then repay the principal without undue delay, plus interest accrued from drawdown to repayment.
The lender cannot charge a cancellation fee or penalty. Non-refundable third-party costs the lender paid on your behalf to public authorities may remain payable — the pre-contract information sheet lists them.
What it covers — and what it doesn’t
The right covers consumer credit: personal loans, car credit, credit cards and similar agreements. Mortgages follow a different EU regime — depending on the country you get a reflection period or a withdrawal window under national rules implementing the Mortgage Credit Directive, so check the national specifics before signing a home loan.
Withdrawal from the credit does not automatically undo a purchase you financed — a car bought with the loan is a separate contract, unless the credit and purchase are legally linked (as in many dealer-financed deals). Linked-credit rules can unwind both together; the pre-contract information states whether your agreement is linked.
Withdrawal vs. early repayment
These are different rights. Withdrawal (14 days) erases the agreement as if it had not been concluded, at zero penalty. Early repayment applies any time later: you can always repay a consumer loan ahead of schedule, and the lender may charge only limited, capped compensation.
If you find a better offer weeks after signing, early repayment plus refinancing is the route — compare current offers with the APRC to check the switch actually pays off after any compensation.
Frequently asked questions
Do I need a reason to withdraw from a loan?+
No. The 14-day right is unconditional — no reason, no penalty. You repay the principal plus interest for the days you actually had the money.
Does the 14-day right apply to mortgages?+
Mortgages follow a separate EU regime; depending on the country you get a reflection period before signing or a withdrawal window after. Check the national rules stated in your mortgage documentation.
I financed a purchase with the loan — does withdrawal cancel the purchase?+
Only if the credit is legally linked to the purchase (common in dealer or store financing). Otherwise the purchase contract stands, and you must fund it another way after withdrawing from the credit.
What if the lender never told me about the withdrawal right?+
The withdrawal period does not start running until you have received the mandatory contractual information. Missing information extends your window — and is a compliance failure worth raising with the lender or the national supervisor.
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