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Letter to Bank requesting 'Extension of Time' for Loan Payment (Sample)

There may come a situation when you are unable to make payment of the loan installment amount or the EMI amount or any other payment due to your bank. In that case, you may approach the bank to allow you some more time for making the payment.

This extension is sought in advance to avoid any kind of late fee and interest that may get additionally charged to your account. If the bank do not have any specific format of submitting the time extension request then you may use the following letter format to write to the bank.


FORMAT
Date: ...................

To
The Manager
(Name of the Branch)
(Name of the Bank)
(Address)

From
(Name of the Account holder)
(Address)
(Contact No.)

  Sub.: Extension of time for making installment payment against education loan
  Ref: (1) Savings account number: ..........................
        (2) Loan account number: ...........................

Dear Sir/Madam,

I am maintaining a savings account in your bank at ..........branch, bearing account number ......................... I had applied for an education loan for my son for Rs. .........../- (Rupees ................... Only) and it was approved in the month of ..........., 2018. For your ready reference, the Loan account number is .................... According to the terms of the loan, an amount of Rs. .........../- (Rupees .................. Only) is getting deducted from my savings account on 6th day of every month.

However, I do not have enough balance for honoring the payment for this month i.e. ............ There is a delay in realizing some payments from my debtors, hence there is a delay in depositing the amounts in my savings account resulting in low balance at this stage. I am expecting the payment within next few days. There will be sufficient balance eventually to honor the installment.

I understand a late payment fee of Rs. ....... is charged in case of such delay along with interest at the rate of 24% p.a. on the payment amount. Therefore, I kindly request you to please allow me seven more days to make the payment for this month only. I will make the due payment by the evening of (Date). The late fee and interest amount will further unnecessarily increase the burden on me in a monetarily tight situation like this. Hence, I further request your goodself to be kind enough to not to levy any late fee and interest during these seven days extension period. In case there is any further delay from my side in making payment, then necessary fees/interest may be deducted and I will honor the same without seeking any further extension of time.

Please kindly note that I am a long standing customer of your bank and I have always been honoring the due payments in time except for only in couple of occasions. I hope you will consider my previous track records while evaluating my request. I value my relationship with the bank and wish to continue this in the mutually beneficial interests.

Thanking you in advance in anticipation for your kind consideration on my request!

Yours faithfully,

  (sign)

(Name of the Account holder)

Comments

  1. Sanjay Dixit7/20/2018

    Wow. Well written. I did some edits to the letter format and wrote to my bank. Thank you.

    ReplyDelete
  2. Hitesh Bhojraj8/22/2018

    The format works perfect for me. Thanks for making it available to us. Great job.

    ReplyDelete
  3. P V Yadav10/05/2018

    I referred this format a couple of weeks back and wrote the letter to bank. I wasn't really expecting that they would approve it. Today, I received the letter that they've extended the time. Thanks anyway!

    ReplyDelete

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