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Draft Letter to Bank Manager for Cancellation of Approved Loan

Sometimes, a loan applicant may change his mind on availing the loan amount from the bank. This may happen due to several reasons.

letter format to bank manager for cancellation of loan
If the applicant is offered a loan at a better interest rate from another bank, then he may decide to cancel his loan application with the other bank, which approved the loan earlier. Likewise, if the applicant has cancelled his plans to buy the vehicle, or to build the house, then he will not go ahead with the loan application.

Other times, just because of the delay in sanction of loan amount, some applicants get so annoyed that they decide to cancel their loan applications.

Here are samples of letters to the bank manager requesting for withdrawal of loan application and cancellation of approved loan. Please modify it appropriately.

TEMPLATE #1

Date: __________

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

Sub.: Withdrawal of my loan application approved by your bank

Dear Sir/Madam,

I would like to withdraw the car/ home/ personal loan application dated ________ approved by your bank by letter no. ______ dated ______. I do not require the loan amount anymore as I have cancelled my plans to buy the vehicle/ build the house/ spend money on business.

I have not encashed the disbursement cheque/ DD yet, which was given to me by a MC/ DD No. _______ dated ______ payable to (Name) for an amount of _________. The same is enclosed herewith.

I understand the loan application fees paid by me and loan sanction processing charges levied by the bank will not be refunded by me. I have no objection to it.

If any more information is required from me, please contact me at mobile no. ________ or email at _________.

Kindly cancel the loan application and do the needful in this regard.

Thanking you,
Yours faithfully,

    (Signature)
(Name of the Customer)

Encl.: A/a


TEMPLATE #2

Date: __________

From
(Name of the Customer)
(Residential Address)
Mob. __________

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

Sub.: Cancellation of loan availed from your bank

Dear Sir/Madam,

I wish to cancel the loan availed by your bank. The details of the loan are as follows for your kind information.

i) Type of Loan: Car loan / Home loan / Personal loan / Two wheeler loan / Commercial vehicle loan / ________ loan.
ii) Loan approval letter / email dated __________ and ref no. _________.
iii) Loan agreement no. __________ dated __________.
iv) Loan approved and agreement done in the name of Mr./Ms. ______________.
v) Reason for cancellation of the loan: Delay in disbursement / Vehicle model not available / Changed mind on planned expenditure.

I have not encashed the disbursement cheque/ DD yet. I am returning the Manager's Cheque / Demand Draft issued by you in respect of the said loan. Please note the MC/ DD No. _______ dated ______ payable to (Name) for an amount of _________. The same is enclosed herewith.

I hereby confirm and agree that (i) acceptance of my request for cancellation of loan is at sole discretion of the bank, (ii) processing and other charges levied earlier for the loan sanction and disbursement will not be refunded, and (iii) interest from date of disbursement to date of cancellation may be charged by the bank at the contracted rate, although I would request the bank to kindly waive it.

Kindly cancel the loan and intimate me accordingly. Please feel free to contact me if any more information or documents are required from my side in this regard.

Thanking you for your understanding and cooperation in the whole process. Sorry for any inconvenience.

Yours faithfully,

    (Signature)
(Name of the Customer)

Encl.: As above


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