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Loan Moratorium Request Letter to the Bank Format

When a borrower gets a temporary break from his lender for repayment of his loan, this break period is called loan moratorium.

A loan account holder of a bank can also make a formal application to the bank for loan moratorium. You have to come out with genuine reasons to convince the bank to give you a loan moratorium.

Here is a sample of such an application letter from a company term-loan-account-holder for getting loan moratorium. Modify it appropriately with more convincing facts.


Date: _________

The Branch Manager
___________ Bank
_________ Branch

Sub.: Request for loan moratorium.
Ref: Term loan account no. ______.

Dear Sir/Madam,

We have availed a term loan facility from your bank for (Amount) under a loan account bearing number _________. We are paying an EMI of (Amount) regularly on time.

We would like to state that due to an inadvertent delay in execution of some of our important projects in hand - we are facing cash flow crunches now. Hence, we are not in a position to pay the EMIs fully for the next few months.

We are enclosing herewith cash flow statement for the month from (Month) to (Month) for your kind perusal.

We, therefore, would pray to your good office to grant us a moratorium for the months from (Month) to (Month) for payment of EMIs due. We are aware that during the period of moratorium interest shall continue to accrue on the outstanding portion of the loan.

We undertake to repay the accumulated accrued interest after the moratorium period is over. We are also aware that the repayment of the loan will be extended /rescheduled by ___ months, and new EMI will be applicable after the moratorium period.

We understand and acknowledge that all other Terms and Conditions of the sanction letter including any other executed documents for the aforementioned loan shall remain the same and binding on us.

Thank you for your valuable time and consideration.

Yours faithfully,

(Name of the Officer)

Enclosure: As above.

Loan Moratorium Request Letter to the Bank Format