Paying off a loan completely is a great source of relief for us. Once we have repaid a loan in full, we can rest assured that a huge chunk of our salary will remain intact from the next month onwards. If you have come into some money and want to repay your loan in full – as opposed to monthly installments – writing a letter and enclosing a check with it is the best way of doing this.
Your letter should specifically mention the type of loan you had obtained from the bank and how much has already been paid. In addition to this, you need to write why you are settling a loan – is this a last monthly payment or are you paying several installments in one go?
The loan repayment letter that you write should be succinctly written. You can thank the loan officer for helping you obtain the loan and for bearing with you in events when your payments were late (if that was the case). Depending on your individual situation, you can put in niceties as required. But a loan repayment letter needs to be written in a formal tone so refraining from jargon that is not official is the best way to go about this.
Following is a loan repayment letter sample based on which you can write your own:
January 12, 2015
Mr. William Wright
Wilson and Wilson Banking Services
100 SE Morrison Street
Topeka, KS 66660
Subject: Repayment of Loan
Dear Mr. Wright:
Please refer to account number CD7263510-11, titled Gordon Freeman which I hold with Wilson and Wilson Banking Services. In April 2012, I applied for a personal loan in this account and have been paying monthly installments of $120.55 since then.
I have recently been commissioned to work on a construction project which has brought in a considerable amount of money as advance payment. Since I am only five installments short of paying off the loan completely, I would like to settle the outstanding amount once and for all. Please find a check amounting to $602.75 enclosed with this letter. This is the final outstanding balance in my personal loan account which I am now paying in full.
Please let me know if there are any formalities that I need to perform to close my account. I would appreciate it if you could provide me with an acknowledgement stating that I have indeed paid back the entire loan amount in full.
I would like to thank you for trusting me enough to grant me this loan when I was starting off my construction business. I look forward to a mutually rewarding relationship with your bank in future as well.
Account Number: CD7263510-11