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Request Letter format to Bank Manager for One Time Settlement

If you are facing a severe financial crisis and have missed payment of instalment for any loan taken from a bank and the bank has been pressurizing you too often to make the payment, you may request the bank for a one-time-settlement of the loan account by making a payment less than the total outstanding amount.
bank loan settlement request letter format

In case you do not wish to spend money paying the interest on the loan and have money for paying off the principal and interest outstanding as on date, then there is no need for one time settlement. You can approach the bank for a pre-closure of the loan account.


Here is a template of request letter to the bank manager for one time settlement of your loan account.

SAMPLE

Date: ..................

From
(Name of the Account holder)
(Registered Address)
(Telephone Number)

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

Sub.: Request for One Time Settlement of Loan
Ref: Loan Account Number ...............................

Dear Sir/Madam,

I am currently having a loan account bearing number .......................... in your bank at …….. branch. The loan account shows the principal outstanding for Rs. ................ and interest overdue for Rs. ............... as on ..(Date)...

I had taken an educational loan for admission in ........(institution name)......... for ........(course name)........ during (year)-(year). After completing the course, I started looking for job opportunities. I was working in an organisation for around ....... months. Hence, I was able to make payment of the loan instalment amount for a while.

But that job did not last long as after the completion of the project, some of the employees working for the project had to be laid off by the employer. Ever since, I have been looking for another job but have not been able to get one till date. This has led to non-payment of the loan instalment for the last several months.

Your collection team has been following up with me, which is putting a lot of pressure on me in addition to my worries of having no job. Some of your collection agents have also visited my home and have been demanding payment, which has created an embarrassing situation for all of us in the family.


Therefore, I have a proposal that I am willing to opt for a one time settlement of Rs. ........... (Rupees ...................... only) in order to close the loan account. I can make the payment by ..(Date)... Even though there will be great hardship in arranging this money, I am still willing to do it for the good of both the parties involved.

I hope your goodself will appreciate my financial situation and consider my proposal favorably. I kindly request you to settle the issue for the amount suggested by me please.

Thanking you!

Yours faithfully,

  (signature)

(Name of the Account Holder)

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