Loan Cancellation Letter

If you are looking to cancel a loan, you should follow these steps:

1. Check the terms and conditions of the loan agreement: Before proceeding with the cancellation, review the terms and conditions of your loan agreement to ensure you know of any penalties, fees, or other requirements associated with the cancellation.
2. Contact the lender: Contact your lender and inform them that you wish to cancel the loan. Please provide them with your loan account number and any other relevant information.
3. Explain the reason for cancellation: Be honest and explain why the loan is cancelled. If it’s due to financial difficulties, inform them of your current financial situation and why you cannot continue with the loan.
4. Follow lender’s instructions: The lender may require you to fill out a cancellation request form or provide additional documentation. Follow their instructions carefully and provide all the required information.
5. Confirm the cancellation: After completing all the necessary steps, confirm with the lender that the loan has been cancelled. Obtain written confirmation if possible.
6. Check credit report: Once the loan has been cancelled, check your credit report to ensure that the cancellation has been reported correctly and that there are no errors.

Here’s an example of a loan cancellation letter:

TEMPLATE #1 (Letter)

[Your Name]
[Your Address]
[City, State ZIP Code]
[Your Contact Details]
[Date]

[Bank Manager’s Name]
[Bank Name]
[Branch Address]
[City, State ZIP Code]

Subject: Request for Cancellation of Loan Account

Dear [Bank Manager’s Name],

I am writing to request the cancellation of my loan account with your bank. The loan account number is [Loan Account Number], and I had availed of a loan of [Loan Amount] on [Loan Disbursement Date].

Due to unforeseen circumstances, I am facing financial difficulties, and it has become challenging for me to continue with the repayment of the loan. I have already paid [Number of EMIs produced] EMIs, and the outstanding balance is [Outstanding Loan Amount].

I have explored all possible options to clear the outstanding balance, but I cannot continue with the loan repayment. Therefore, I request you cancel my loan account and waive the due credit.

I am willing to comply with all the procedures and pay any necessary charges to cancel the loan. Please provide me with the required details and guide me through the process.

I assure you that I will clear all the dues and comply with the procedures involved in the cancellation process. Please provide me with a confirmation letter stating the cancellation of the loan and the waiver of the outstanding balance.

I want to take this opportunity to thank you and your team for the assistance provided to me during the loan availing process. I look forward to a positive response from your end and appreciate your understanding in this matter.

Thank you.

Sincerely,

[Your Name]

TEMPLATE #2 (Letter)

[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]

[Bank Manager’s Name]
[Bank Name]
[Bank Address]
[City, State ZIP Code]

Subject: Cancellation of Loan Request

Dear Sir/Madam,

I am writing to request the cancellation of the loan I applied for on [date]. My loan application number is [insert your loan application number].

Due to unforeseen circumstances, I have decided to cancel my loan request. Please
let me know how to balance my loan application and any further steps I need to take.

Thank you for considering my loan application and for your time and assistance.Please let me know if further documentation is required to complete this process. I am available to provide any additional information that may be necessary.

Thank you for your prompt attention to this matter.

Sincerely,

[Your Name]