If you are considering prepaying or foreclosing your loan, you will need to write a bank for prepayment or foreclosure of loan letter. This letter is necessary because it gives the bank notice of your intentions and allows them to object to the prepayment or foreclosure.
When writing a bank for prepayment or foreclosure of loan letter, there are a few things that you should keep in mind:
- You will need to include your contact information and account number.
- You must state your intent to prepaid or foreclose on the loan.
- You will need to provide a reason for your decision.
(Name of the Borrower)
The Branch Manager
(Name of the Bank)
(Name of the Branch)
Sub.: Request for prepayment / pre-closure of loan obtained
Ref: Loan account number ___________
I am writing this letter to inform you that I would like to request for prepayment / pre-closure of my loan amounting to $____________ (loan amount). I have been a good-paying customer of the bank, and I can fully settle my loan earlier than the maturity date.
The loan’s prepayment / pre-closure will enable me to save on interest payments. I am attaching all the necessary documents for your perusal. I hope that you will approve my request at the soonest possible time. Thank you very much.
I confirm that the prepayment/ pre-closure payment is being made from the sources mentioned herewith. Please note the following details of payment enclosed towards prepayment / pre-closure of the said loan:
1. Cheque/ DD/ Ref. No. ________ dated _________.
2. Amount: __________.
3. Bank name and Branch: _____________.
4. Bank account number: ___________.
5. Payer name: _______________________.
6. Source Description with Source Amount Breakup.
7. Details of Bank Statement/ Other Document evidencing source: ___________.
The bank statement for the last six months is enclosed herewith for your kind information.
(Write this para only for pre-closure.) Further, if any excess amount is available under my loan account after adjusting all the dues and charges, then you are kindly requested to remit such amount directly to my following bank account: (a) Bank name: _____________, (b) Account number: __________, (c) Type: Savings/Current, (d) IFSC: __________, (e) MICR: _________, and (f) Account-holder name: __________.
Kindly do the needful and oblige.
(Name of the Borrower)