How to Ask Someone for Money in a Letter [with Sample]

Money is one of the most difficult topics to deal with whether it is among family members, friends or strangers. If you find yourself in a position of asking for money, there are some ways to increase your chances of getting it. 

Writing a letter is a good start because it is a bit formal and courteous, so you don’t appear like you are being casual about the money.

The aim of this article is about receiving money for personal reasons or for a charitable cause. Banks and lending associations expect to be asked for money, but friends and family don’t. 

This is why you need to give them the same courtesies you would give a bank. This includes a clear reason you need the money, a plan for repaying it and offering time for them to consider your request.

Make a Plan

Before you start writing your letter, you should make a plan. The plan should include the amount you want to ask for and an amount you will accept. For example, if you ask for $1000 and are offered $800, will you politely decline or accept it with gratitude?

For a personal request, the plan should also include a means to repay the money. Unless the person specifically says it is a gift, you must consider a repayment plan. For example, your grandmother may say it’s a gift, but your father may say he expects to be paid back.

Your plan should also include an escape route for the lender. If he or she is not in a position to lend you money, they may hesitate. At that point you can say if it’s not possible at this time, don’t worry, it’s not a problem. 

If you don’t know the lender very well, they may agree to give the money at an unacceptable rate of interest. At this point, you need to have an exit strategy.

Choose the Right Person

Borrowing money from a friend or family member can strain even the closest relationship. You want to avoid this at all costs. Obviously, you shouldn’t ask someone who is also in financial trouble. 

You may also want to avoid someone who has given you money in the past that you didn’t repay. If you did repay a previous loan, and you have a good repayment plan and put it in writing e.g. in the letter asking for money, a person who gave you money in the past may be a good option.

Start the Letter Asking for Money

The letter should include:
• The exact amount you want to borrow
• The reason you need financial help and what you will spend it on
• Your plan for repayment including a time frame
• An offer of paying interest

Here is a sample personal request for money from a family member:

sample personal request for money from a family member

DATE

Name of Uncle
Address of Uncle
City, State, Zip Code

Dear Uncle Tobias:

I haven’t seen you since last Thanksgiving and I hope you and Aunt Jane are safe and well. This letter is a formal request for a loan of $1000 to help pay the expenses of back-to-school for Mary and Luke. 

They are entering fifth and seventh grades respectively and need new shoes, school supplies and laptops, and I have to pay fees for sports participation for Luke and pottery class for Mary. 

Normally, I would be able to afford these things, but I had to pay a percentage of my cancer treatment, which depleted my savings. Thankfully, I am cancer-free now.

I start back to work next month and will begin to receive my full paycheck. Once that starts, I can repay you $200 per month for five months and whatever interest you require.

Thank you for considering my situation, and if it isn’t a good time for you to lend money, don’t worry, things will work out. Give my love to Aunt Jane.

Your loving niece,

Susan

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