How to Write a Personal Loan Request Letter [with Sample]

While banks do not require a letter to obtain a personal loan, there are some financial institutions that will ask for it. Writing a letter asking for a loan is not difficult, but a few guidelines should be followed.

The letter needs to request the loan and then also state your ability to repay it. This letter should not be used as a desperation plea, but should rather state the facts and that’s it. 

Top Requests

Reason For The Loan

The bank doesn’t care how you are, and actually pleading and telling too much can weight negatively on the chances of getting a loan. 

The bank wants to know the reason why you need the money and your intentions to repay the debt, nothing else.

Start the letter using a block format and putting the date and the financial institutions name and address to the left. 

If you have used the services of this bank for a specific number of years, it is okay to put that in there.

Other Accounts On File?

If there are other accounts on file, you should also mention it in the letter. The bank needs to see that by giving you a loan, you are already a valuable part of their banking group. 

If you have many accounts and do a great deal of business with this specific location, you may get preference over someone who doesn’t deal with this bank.

The first paragraph needs to get right to the point. The letter needs to state why the money is needed. Banks are becoming increasingly picky with who they lend money too. 

The goal of a letter of this nature is to make sure that they get a clear picture of how responsible and able to repay the loan the individual is.

Give Details

Use this letter to go into details of what the money will be used for. Oftentimes, banks will lend money for home improvements easier than they will just a personal loan. 

Things that will make the home better and allow it to have a higher market value may be of interest to them.

Some banks like to know that there is a home they can put a lien on should the loan default. Any collateral that you may have increases the chances of obtaining a loan.

The second paragraph should show that there is a means to repay the loan. If the loan will be paid by employment, state how long you have worked at the job and this shows consistency.

Letter doesn’t need to be long!

This letter doesn’t need to be long, and if you don’t have enough for three paragraphs that is fine. Just say what needs to be said according to the banks qualifications and that’s it.

You want to showcase yourself as a person that they would want to lend money too. Don’t ramble and don’t say too much. 

Give your contact information at the bottom of the letter and end with the proper closing. Here is a sample letter to help you with formatting.

Sample Personal Loan Request Letter

May 04, 2022

M&T Federal Credit Union
2917 Credit Alley
Lawnside, Ohio 41907
Attn: Lending Department

To Whom It May Concern,

I would like to obtain a personal loan in the amount of [$7,500]. This loan will be used to help renovate my home. I would like to remodel my bathroom and update my home. 

My home is a 1987 model and the bathroom has not been updated since that time. A bathroom remodel is essential to me being able to put my house on the market.

I have been a longtime standing member of this credit union and have three open accounts with your organization. I had a person loan back in 2019, which I paid off within 6 months of opening.

I am currently employed at the [ABC Corporation] and just celebrated my [17th year anniversary]. I have stable employment and an excellent credit history and there should be no reason why I cannot obtain a loan from your bank.

Please contact me at your earliest convenience to discuss this matter further. I can be reached anytime at [555-927-1213]. I would like to get this matter taken care of immediately.


Steve Young
Account Number: [#123456]
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