Personal Loan Request Letter (Template & Example)

A personal loan request letter is a letter written by a loan applicant and addressed to a financial institution, introducing the applicant, and supporting their loan application. Anyone wanting to take out a personal loan should write a personal loan request letter to introduce themselves to their target banking institution. The purpose of the letter is to request a loan formally and to demonstrate that they can repay the loan amount requested.

In short, the applicant needs to use this letter to demonstrate to the bank that they are a reasonable financial risk.

This is a professional document, so write professionally and use a formal format for your letter. Write clearly and concisely, and send supporting financial documents. These documents might include tax returns, paycheck stubs, and bank account balances. You might want to include collateral information you can use to obtain the loan, such as a car, a boat, or a house.

Tip: Your personal loan request letter is the first document the lender will see when applying for a loan. Address it to a person, not a title. Addressing the loan administrator by name can positively influence their first impression of you as a borrower. You can ask for this information at the bank, or you can look for the information on the bank’s website.

Lenders are primarily concerned with your ability to repay the amount you are requesting as a loan. However, a lender must have some other information about your loan request before they can judge your ability to repay the loan. Here is what to include in a personal loan application letter:

• The amount of the loan you are requesting
• Your name and contact information
• Your status as a borrower, such as bank accounts and income information
• Any property you might have as collateral for the loan
• The intended use of the loan funds
• The expected benefit of the use of funds
• A detailed list of enclosed documents, including your loan application

This might sound overwhelming, but it is really quite simple. For example, if you have a home in need of a renovation, you might ask for a loan of the amount needed to perform the renovation. In writing your letter, you would state the renovation as the intended use of the funds and the return on investment (ROI) you anticipate as the expected benefit the renovation will provide.

Personal Loan Request Letter (Word Template)

The purpose of a personal loan request letter is to support your loan application positively. Be clear about your financial circumstances and the benefits the loan can provide. This supporting information, written clearly and concisely, can assist you in getting the loan you need to accomplish your goals.