There could be a situation in life when we need some financial help. Anyone can meet a reason to turn to the bank with loan application letter. In this post, we are going to tell you how to write it.
What is loan application letter to bank?
The list of possible reasons for requesting the loan is long, it can be a starting capital for your business, or a need in credit to buy a house, and so on. So, let’s try to figure out all the features of an application letter and how to write it.
Loan application letter helps the manager to make a decision about your request. Loan application letter could be written in the case when the applicant needs some monetary assistance that can be given in the form of a loan. One of the most popular reasons for asking for loan is the hypothec for property.
Such a letter is a request, that is why it should be written in right and polite tone. Here we have for you some tips and exemplars to write effective loan application letter to the bank.
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Let’s start with some tips:
- Such kind of letter is formal that is why one should choose phrases and words carefully
- All the words should be easy to understand
- The content should be straightforward and short
An important thing, before writing such a letter one should think about the amount to be, the term of repayment, and the rate of interests. There shouldn't be any doubts that you can repay the loan at proposed terms.
Loan application letter format
The letter is required to be short and to-the-point. Generally, such a letter has six paragraphs to discuss each major topic. The content always contains the requested amount, most likely a description of your business, and of course the purpose of the loan. You can call, or visit the official web page of the bank to know the name of the manager who handles loan questions. See also: SME loans in Nigeria.
Some letters can contain the date of complete repayment. It is also good to insert some positive information about you in the letter, to show that you are a trustworthy person. It can be for example past financial history of loans, information about employment, or business. You should be honest in providing all the information, because the bank manager may check it, any untruth would lead to rejection.
If you are the owner of the business, there is a need to provide some documents to confirm that the loan would be used for legitimate purposes. One should explain how this loan can help his or her business.
Loan request letter to bank manager sample
Here we have the sample that will help you to write the loan application letter for bank:
- To (Branch Manager’s name, bank branch address)
- From (Your name and address)
- Dear Mr. /Ms (name of the manager or concerned person)
- There is my saving account in your bank (account number) for (quantity) years. I want to apply for (write the type of loan) for (write about your purpose).
- I want to know the details and required formalities to receive the loan from your bank. I'm ready to meet you at the earliest time. Thank you.
- Yours Sincerely (Your name)
- Date and signature
Remember that it is possible to send such a request in email format.
Business-purpose loans or personal loan requests letters have the same structure, business variation just requires to insert more information about you and your business. There is nothing difficult in writing such letters. The format is formal but it allows for some creative approach, the main rule is to be truthful. We wish you luck and beneficial loans to receive.
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