There is no ready made template 

it depends  upon facts of each case 

Contact a local lawyer

1. There is no template for cancellation oaf agreement.

2. Agreement are of varied kinds and even two agreement of similar context have different terms terms and conditions.

3. You should better meet a local advocate and get it drafted by him.

See templates are not provided herein, you can engage an advocate to Draft a Cancellation of Loan Agreement for you.

1) If you want I can provide you Cancellation of loan agreement format. Kindly have consultation call with me.

Dear Sir,

Please down load the following:

https://www.sec.gov/Archives/edgar/data/805012/[deleted]/dex991.htm

Mutual Termination of Contract Template  from this website:

https://www.biztree.com/doc/mutual-termination-of-contract-D513

We are not authorised to give a template here you need to take out services of drafting for the same through kaanoon

Better Contact a local lawyer. 

Cancellation draft depends on executed loan agreement. 

1. As per the information mentioned in the present query, makes it clear that you wish to cancel the loan agremeent after settling mutually between each other.
2. There has been a format for doing the same which you can find over the Internet.
3. Still, if you want able to find then I will provide you the best format for executing the same and also not forget to get it notarised from the oath commissioner.

You can engage the services of an advocate who will be able to draft a cancellation of loan properly as per law and the prevailing procedures.

You can get the template from google search also.