What happens if I do not draw down an approved

2 min read

No obligationTo draw

Offer lapsesIf left

FeesMay not refund

Tell themIf not proceeding

Approval is permission, not obligation

Being approved means the lender is willing to fund you; it does not force you to take the money. If your need has passed or you have found better terms, you can decline to draw down. On most unsecured facilities, walking away before drawdown costs nothing.

What happens to the offer

Leave an approval untouched and it will expire at the end of its validity period. The facility simply never activates. If you might want it later, tell the lender — they may hold or re-issue it, though the rate can move on re-issue.

Any costs of not drawing

Check whether any arrangement fee was payable on offer rather than on drawdown; on some deals a fee, or third-party costs like a valuation on a secured facility, may already be committed and non-refundable. Let the lender know you are not proceeding so they close the file cleanly. If your plans have changed, revisit the borrowing-decision checklist before committing to anything new.

Frequently asked questions

Will not drawing down affect my credit or future applications?

The unused approval itself does no harm, though the application's hard search remains on file. Declining to draw does not mark you as a bad borrower; circumstances change and lenders understand that.

Can I keep an approved loan on standby?

Only within its validity window, and it will lapse after that. If you want funds available on standby, a revolving facility you can draw when needed suits that purpose far better than an unused term-loan approval.