How to Write a Letter to Your Bank for Personal Loan Settlement
(When You’re Behind and Need to Fix Things)
We don’t always plan for what life throws at us. And when money gets tight, the first thing to slip is often that EMI.
It happens.
You’re not a bad borrower. You’re not alone either.
The smart move here? Don’t ignore the problem. Don’t hide. Just talk to the bank—and not on a call, not through WhatsApp. Write them a letter.
Why Write a Letter?
Because once it’s on paper, they have to read it.
A letter shows:
- You’re still present
- You’re willing to settle
- You want to avoid legal mess
- You’re not trying to vanish
Calls can get lost. Letters don’t.
What to Include in Your Letter (and What Not To)
Write like you’re speaking to someone at the bank who has 10 minutes. Be respectful, be real, and stick to the point.
Start with the subject:
Subject: Settlement Request – Personal Loan Account No. XXXXXXXX
Who are you?
- Your name
- Account number
- When you took the loan
Why you’re writing
“I lost my job a few months ago and things have been financially tight. I’ve missed a few EMIs and I’m not in a position to pay the entire outstanding amount.”
Your offer
“I can pay ₹1,25,000 as a one-time settlement. I request that you waive the remaining balance and close the loan.”
Ask for written reply
“If the bank agrees, please send confirmation in writing so I can make the payment.”
Attach documents
- Job termination or salary reduction letter
- Medical bills if relevant
- Any notice from the bank
- Your latest bank statement
A Real-World Sample Letter
To,
The Branch Manager
[Bank Name]
[Branch Address]Subject: Personal Loan Settlement – Account XXXXXXXX
Dear Sir/Madam,
I had taken a personal loan from your bank. Due to financial hardship over the past few months, I have not been able to make EMI payments.
I would like to offer ₹1,25,000 as a one-time settlement for the closure of the loan. I request a waiver of the remaining balance and late fees.
I’ve attached a few documents that explain my current situation. Please confirm in writing if this proposal is acceptable.
Sincerely,
[Your Name]
[Phone]
[Email]
[Date]
What to Avoid
- Don’t write an emotional essay
- Don’t say “I’ll pay whatever I can” — give a number
- Don’t send money unless you get an official letter
- Don’t use aggressive or rude language
- Don’t forget to keep a copy of the letter
What If You Don’t Hear Back?
Sometimes banks don’t reply. Sometimes they act like they didn’t receive anything. Sometimes recovery agents still keep calling.
That’s when you need help. Serious help.
What Legals365 Can Do For You
If you’re tired of calls and confusion, Advocate B.K. Singh and his team at Legals365 can take over for you.
They will:
- Write the letter for you (in the exact words banks respond to)
- Deal directly with bank legal officers
- Get recovery harassment to stop
- Negotiate better terms
- Make sure your settlement is official, closed, and reflects in your CIBIL report
- Be with you until the matter is done fully done
You don’t have to carry the pressure alone.
Final Thought
If you’ve missed payments, don’t let shame keep you stuck.
A good letter, a calm tone, and the right offer can change the direction of this whole thing.
Write it. Send it. And if you need a hand, Legals365 is one call away.
Legals365.com | Legals365 | OnlineNoida.com | OnlineNoida | AdvocateBKSingh | Advocate B.K. Singh
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