Learn how to write a personal loan repayment letter. Use our sample personal loan repayment letter as a template for your repayment letter.
Sample Personal Loan Repayment Letter
[Name of Borrower]
[Address of Borrower]
[City, State, Zip Code]
[Name of Lender]
[Company of Lender if applicable]
[Address of Lender]
[City, State, Zip Code]
RE: [Repayment of personal loan]
Dear [Name of Lender]:
This letter is a formal acknowledgement of the final payment of my personal loan for [AMOUNT] made on [DATE].
Enclosed please find a check for [AMOUNT] that is the last payment due. Kindly note that according to our loan repayment agreement the loan should be paid in full on or before [DATE], and that this payment is made on [DATE].
Therefore, my loan is paid in full according to the payment agreement terms, and I request that you acknowledge that the loan is fully repaid by signing an enclosed copy of this letter and returning it to me.
If you have any questions, I can be reached at [Phone Number] or at [Email Address] any day after [2pm].
Thank you for giving me the personal loan.
[Signature of Borrower]
[Printed Name of Borrower]
List of Enclosures:
Check for AMOUNT
A copy of this letter to be signed and returned to the borrower
[Place for the signature of Lender]
[Printed Name of Lender]
Frequently Asked Questions (FAQs)
1. What is a Personal Loan Repayment Letter?Answer: A personal loan repayment letter is a formal letter written by a borrower to a lender, indicating the intention to repay a personal loan. The letter typically includes details such as the loan amount, repayment terms, and a promise to repay the loan according to the agreed terms.
2. Why is a Personal Loan Repayment Letter important?Answer: A personal loan repayment letter is important because it serves as a formal record of the borrower’s commitment to repay the loan. It also helps establish clear communication between the borrower and lender, and provides a reference point if there are any disputes or misunderstandings about the loan repayment terms.
3. What information should be included in a Personal Loan Repayment Letter?Answer: A personal loan repayment letter should include the following information:
- The loan amount
- The loan repayment terms
- The loan repayment schedule
- The borrower’s contact information
- A promise to repay the loan according to the agreed terms
4. How should a Personal Loan Repayment Letter be formatted?Answer: A personal loan repayment letter should be formatted as a formal business letter, with a clear and professional tone. It should include a heading with the borrower’s address and the date, followed by the lender’s address.
The body of the letter should clearly state the purpose of the letter, and include all relevant details about the loan repayment. The letter should end with a closing, followed by the borrower’s signature.