What is 'rescission period' in SAP FS-CML - Loans Management?

rescission period - Overview

• Component: FS-CML

• Component Name: Loans Management

• Description: Period in days from the instruction date within which the borrower can rescind the loan contract.

rescission period - Details

• 
  Key Concepts: 
  Rescission period is a feature of the FS-CML Loans Management component of SAP. It is a period of time during which a borrower can cancel a loan agreement without penalty. The rescission period begins when the borrower receives the loan documents and ends three days later. 
  
  How to use it: 
  The rescission period is used to protect borrowers from entering into loan agreements that they may not fully understand or may not be able to afford. During this period, the borrower can cancel the loan agreement without any penalty or cost. 
  
  Tips & Tricks: 
  It is important to note that the rescission period does not apply to all types of loans. For example, it does not apply to home equity loans or lines of credit. Additionally, some states may have laws that extend the rescission period beyond three days. 
  
  Related Information: 
  For more information about the rescission period and other features of FS-CML Loans Management, please refer to SAP’s official documentation. Additionally, you can contact your local SAP representative for more information about how this feature works in your particular state or country.