Yes. This is an unconditional right of the borrower — at any time and without penalties. An online loan is not a fixed "contract for a set term," but a flexible obligation that can be repaid earlier.
The right to terminate credit obligations early is established by law:
| Legal provision | What it means |
|---|---|
| Law No. 1734-VIII "On Consumer Lending," Article 16 (zakon.rada.gov.ua/laws/show/1734-19) | You may repay the loan in full or in part at any time without penalties or additional early-repayment charges. |
| Civil Code of Ukraine, Article 1049 (zakon.rada.gov.ua/laws/show/435-15) | The borrower has the right to repay a loan early, and contractual restrictions on this right are not permitted in consumer lending. |
How to Exit a Loan Early: 3 Legal Scenarios
1) Early Repayment (the Most Common Option)
You simply repay the debt before the scheduled date. To do this, you pay:
- Loan principal
- Interest only for the actual days the funds were used
Example: How Much You Save With Early Repayment
Loan terms:
- Amount: UAH 5,000
- Term: 30 days
- Rate: 1% per day
- Actual use: 10 days
1. If the loan is used for the full term (30 days)
Calculation: 5,000 × 1% × 30 = 5,000 × 0.01 × 30 = UAH 1,500 in interest.
Total amount to repay: UAH 6,500.
2. If repaid early (after 10 days)
Calculation: 5,000 × 1% × 10 = 5,000 × 0.01 × 10 = UAH 500 in interest.
Total amount to repay: UAH 5,500.
Result:
- Interest for 30 days: UAH 1,500
- Interest for 10 days: UAH 500
Savings: UAH 1,000.
2. "Cooling-Off Period" — 14 Days Without Explanation
If the loan has just been issued, under Article 15 of Law No. 1734-VIII the client may withdraw from the agreement within 14 days without penalties or having to explain the reason. Only interest for the actual days of use is payable.
3. Termination by Mutual Agreement
In some cases, a credit agreement may be terminated by mutual consent. Under the Civil Code (Article 651, zakon.rada.gov.ua/laws/show/435-15), an agreement may be terminated by agreement of the parties. The specific terms are subject to negotiation and individual changes to the credit arrangement.
This option is more flexible, but it does not guarantee that the MFO will agree to your terms.
How to Close a Loan Properly
- Step 1: Notify the MFO (through your account / email / official channels). According to Article 16 of Law No. 1734-VIII, notice must be given 1 business day in advance.
- Step 2: Obtain information on the final amount due. Under Article 12 of Law No. 1734-VIII, the lender must provide the exact amount of the current outstanding debt.
- Step 3: Make the payment. Pay the exact amount and keep proof of payment.
- Step 4: Make sure the agreement is closed. After all obligations under the agreement have been fulfilled, the consumer has the right to receive information confirming that there is no outstanding debt (Law No. 1734-VIII, Article 12).