Cooling-off period (कूलिंग-ऑफ अवधि)
The cooling-off period is a window after disbursal, mandated by RBI's Digital Lending Directions, during which you can exit a digital loan by paying only the principal and the proportionate APR-based cost, with no penalty. Its length is set by the lender's board, subject to a minimum of one day, and it must be stated in your Key Fact Statement.
Worked example
You take ₹10,000 at 36% APR and change your mind on day 2. Within the cooling-off window you repay ₹10,000 + about ₹20 (two days of proportionate cost) and exit — no penalty, no prepayment charge.