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Learn how to write a loan repayment extension request letter. Use our sample loan repayment extension request letter as a template for your repayment extension request letter.
Sample Repayment Extension Request Letter
[Your Name]
[Your Address]
[City, State, Zip Code]
[Account Number if Applicable]
[DATE]
[Name of Lending Officer or Lender]
[Name of Bank or Lending Institution if Applicable]
[Address of Lender]
[City, State, Zip Code]
RE: Request for an extension of loan payments
Dear [Name of Loan Officer or Lender]:
This letter is a formal request to have a [TIME] extension on my car loan. I have made payments of [AMOUNT] per month for the past 24 months, and the loan is for 12 more months.
I have just lost my job and cannot make payments at this time. I need my car to find another job, and hope to do so within [TIME] at the most. I understand that the interest still accrues and intend to pay this debt in full.
Thank you for considering my request for a [TIME] extension of my car loan. I can be reached at [Phone Number] or at [Email Address]. I hope to receive a favorable reply from you soon. I will call to arrange an appointment next week.
Sincerely,
[Your Signature]
[Your Printed Name]
Frequently Asked Questions (FAQs)
1. What is a repayment extension request?
Answer: A repayment extension request is a formal request made by a borrower to a lender or creditor, asking for more time to repay a debt or loan.
2. What are the reasons for making a repayment extension request?
Answer: Reasons for making a repayment extension request can include financial hardship, unexpected expenses, or changes in income.
3. How is a repayment extension request made?
Answer: A repayment extension request is typically made in writing, in the form of a letter addressed to the lender or creditor.
4. What documentation is required to support a repayment extension request?
Answer: Documentation that may be required to support a repayment extension request can include proof of financial hardship, such as pay stubs or bills, and a plan for repaying the debt.
5. Are there any potential consequences of requesting a repayment extension?
Answer: If a repayment extension is granted, the borrower may be charged additional fees or interest. It may also be reported to credit bureaus, which can affect the borrower’s credit score. If the extension request is denied, the borrower may be at risk of defaulting on the loan or facing collections actions.
6. What are the potential outcomes of a repayment extension request?
Answer: The potential outcomes of a repayment extension request can include the lender or creditor granting the extension, denying the request, or offering a modified repayment plan.
If the extension is granted, the borrower may be charged additional fees or interest, and it may be reported to credit bureaus, which can affect the borrower’s credit score. If the request is denied, the borrower may be at risk of defaulting on the loan or facing collections actions.