Loan Reconsideration Letter: How To Draft It Right!

Key Takeaways

  • Purpose: Understand the purpose and importance of a loan reconsideration letter.
  • Preparation: Steps to prepare before writing, including gathering necessary documents and reviewing reasons for loan denial.
  • Structure: A step-by-step guide to structuring your letter.
  • Tone and Content: Tips on maintaining a professional tone and what content to include.
  • Follow-Up: Advice on follow-up actions after sending the letter.
  • Template: A ready-to-use template to craft your letter.


When your loan application gets denied, it’s not necessarily the end of the road. Writing a loan reconsideration letter can be a pivotal step in persuading a lender to reevaluate your application. This article provides a comprehensive guide on crafting an effective reconsideration letter, ensuring your case is presented clearly and professionally.

Preparation: Laying the Groundwork

  1. Review the Denial: Understand why your loan was denied. Lenders are required to provide a reason, which will be critical in your appeal.
  2. Gather Documentation: Collect any documents that support your case. This might include improved credit reports, proof of additional income, or error corrections.
  3. Know Your Audience: Research the lender’s appeal process and whom to address your letter to.

Structure: Crafting Your Letter

1. Heading

  • Your Information: Include your name, address, and contact details.
  • Date: The date of writing the letter.
  • Lender’s Information: The lender’s name and address.

2. Greeting

  • Formal Salutation: Use a formal salutation like “Dear [Lender’s Name/Loan Officer’s Name].”

3. Introduction

  • State Your Purpose: Clearly mention that the letter is for reconsidering your loan application.
  • Reference Your Application: Include application number or any identifying details.

4. Body

  • State the Denial Reasons: Acknowledge the reasons for loan denial.
  • Present Your Argument: Counter the reasons with your updated financial information or corrections.

5. Conclusion

  • Reiterate Your Request: Conclude by reiterating your request for reconsideration.
  • Polite Close: End with a polite closing such as “Sincerely” or “Regards,” followed by your name.

Tone and Content: What to Include

  • Be Concise: Keep your letter to one page.
  • Professional Tone: Maintain a formal, respectful tone.
  • Factual: Base your arguments on facts and figures.
  • Honesty: Be honest about your financial situation.

Follow-Up: After Sending the Letter

  1. Confirmation: Ensure the letter has been received.
  2. Patience: Lenders may take time to respond.
  3. Be Prepared: Be ready for further communication or to provide additional information.

Template for Loan Reconsideration Letter

[Your Name]
[Your Address]
[City, State, Zip]

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

Dear [Lender’s Name/Loan Officer’s Name],

I am writing to respectfully request a reconsideration of my recent loan application, which was declined on [Date of Denial]. My application number is [Application Number].

I understand that my application was denied due to [Reasons for Denial]. However, since then, [State any changes or corrections to your financial situation]. [Provide specific details and attach supporting documents].

I believe these changes address the concerns in my initial application and make me a suitable candidate for the loan. I am committed to fulfilling the necessary obligations and hope you will reevaluate my application in light of this new information.

Thank you for considering my request. I look forward to a favorable response.


[Your Name]


Writing a loan reconsideration letter is about effectively communicating your improved financial situation or correcting misunderstandings. By following these steps and using the provided template, you increase your chances of having your loan application reconsidered.

Tips for Writing a Loan Reconsideration Letter

  • Clarity: Be clear and precise in your language.
  • Documentation: Attach all relevant supporting documents.
  • Follow-Up: Don’t hesitate to follow up if you haven’t received a response.

Frequently Asked Questions (FAQs)

Q: What is a loan reconsideration letter?

A: A loan reconsideration letter is a formal request sent to a lender asking them to reevaluate a loan application that was previously denied. It provides an opportunity for the applicant to present new or corrected information that might influence the lender’s decision.

Q: When should I write a loan reconsideration letter?

A: You should write a loan reconsideration letter soon after receiving the notice of loan denial, especially if your financial situation has improved or if there were errors in your initial application that have been corrected.

Q: What should I include in a loan reconsideration letter?

A: Your letter should include your personal details, the details of your loan application, a clear request for reconsideration, the reasons your loan was initially denied, any new or corrected information that addresses these reasons, and any supporting documentation.

Q: How long should my loan reconsideration letter be?

A: Keep your letter concise and to the point, ideally not exceeding one page. It’s important to be clear and direct, presenting only the relevant information.

Q: Can I submit a loan reconsideration letter via email?

A: This depends on the lender’s policy. Some lenders might accept an email, while others may require a physical letter. Always check with your lender for their preferred method of communication.

Q: How do I format a loan reconsideration letter?

A: Format your letter like a standard business letter. Start with your contact information, date, lender’s contact information, a formal salutation, followed by the body of your letter, and a professional closing.

Q: What tone should I use in a loan reconsideration letter?

A: Maintain a professional, respectful, and polite tone throughout the letter. Avoid sounding confrontational or emotional, and focus on presenting factual information.

Q: Should I follow up after sending a loan reconsideration letter?

A: Yes, it’s advisable to follow up if you haven’t received a response within a reasonable timeframe. This shows your continued interest and can prompt a quicker review of your reconsideration request.

Q: What are the chances of success with a loan reconsideration letter?

A: The success of a loan reconsideration letter depends on several factors, including the reasons for the initial denial, the new information provided, and the lender’s policies. There is no guarantee of success, but presenting a strong case can improve your chances.

Q: Can a loan reconsideration letter negatively impact my credit score?

A: Writing a loan reconsideration letter itself does not impact your credit score. However, if the lender decides to perform a hard inquiry as part of the reconsideration process, it may have a minor and temporary impact on your score.