3 Loan Repayment Extension Request Letter Templates Unveiled

Below are three templates for different situations that might necessitate such a request. Each template includes essential elements like your contact information, the date, the lender’s contact information, an introduction, body paragraphs explaining your situation, a proposed plan for repayment, and a conclusion. 

Template 1: Due to Temporary Financial Hardship





[Your Name]
[Your Address]
[City, State, Zip]
[Email Address]
[Phone Number]
[Date]

[Lender’s Name]
[Lender’s Address]
[City, State, Zip]

Photo of a young Black woman with curly hair tied in a ponytail, wearing a green blouse. She is writing a loan repayment extension request letter

Dear [Lender’s Name],

I am writing to request a temporary extension on my loan repayment for [Loan Account Number]. Due to unforeseen circumstances, I am currently experiencing financial hardship because of [briefly describe reason, e.g., medical emergencies, job loss].

I have been a diligent borrower until now, prioritizing my loan repayments. However, these recent events have temporarily affected my financial stability, making it challenging to meet the upcoming payment due on [Due Date].

To address this, I propose a [number of months] months extension to get back on stable financial footing. During this period, I plan to [outline of how you plan to manage your finances, e.g., seeking employment, cutting unnecessary expenses]. I am committed to resuming regular payments as soon as possible and am open to discussing any alternative arrangements that might be more suitable.

Thank you for considering my request. I appreciate your understanding and willingness to work with me during this challenging time. I am hopeful for a positive response and am ready to provide any additional information required.

Sincerely,

[Your Name]

Template 2: Due to Business Downturn

[Your Name or Business Name]
[Your Address]
[City, State, Zip]
[Email Address]
[Phone Number]
[Date]

[Lender’s Name]
[Lender’s Address]
[City, State, Zip]

Dear [Lender’s Name],

I am contacting you regarding my current loan, [Loan Account Number], which has been utilized for [purpose of the loan]. Due to a significant downturn in business caused by [specific reason, e.g., market fluctuations, decreased consumer demand], I am finding it increasingly difficult to meet the agreed-upon repayment schedule.

Despite these challenges, I am actively working on measures to improve my financial situation, including [list of measures, e.g., diversifying services, reducing operational costs]. Therefore, I kindly request an extension on my repayment schedule for [specify duration], which will provide the necessary time to stabilize my financial standing and ensure consistent payment moving forward.

I am fully committed to fulfilling my loan obligations and would like to discuss possible repayment plans that accommodate my current financial situation while also meeting your requirements.

I appreciate your understanding and support during this period and look forward to your favorable response. Please let me know if you need any further information or documentation from my side.

Warm regards,

[Your Name or Business Name]

Template 3: Due to Educational Commitments

[Your Name]
[Your Address]
[City, State, Zip]
[Email Address]
[Phone Number]
[Date]

[Lender’s Name]
[Lender’s Address]
[City, State, Zip]

Dear [Lender’s Name],

I am currently enrolled in [Name of Institution] pursuing a degree in [Degree Name], which has significantly impacted my ability to maintain steady employment and, consequently, meet the repayment requirements for my loan [Loan Account Number].

Given my commitment to completing my education and securing a better financial future, I respectfully request a repayment extension of [specify duration]. 

This extension would greatly assist me in managing my finances more effectively during my studies, ensuring that I can meet my loan obligations without compromising my educational goals.

I am eager to discuss any potential options for modifying my repayment plan to align with my current financial capabilities. I am confident that, with this temporary adjustment, I will be able to resume regular payments upon the completion of my degree.

Thank you very much for considering my request. I look forward to your understanding and am happy to provide any additional information required.

Sincerely,

[Your Name]


Each template aims to convey a respectful request for an extension while providing a clear rationale and a commitment to future payments. Adjust the specific details as necessary to fit your situation, and remember to keep the tone professional and courteous.

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