A loan application letter is written to by an individual who requires finances to cater for a specified need.

Loan application letter format.

In the letter you should indicate the amount of money you require besides how you will spend the money. It is the part cover letter and part resume because you demonstrate the qualities that make you a good candidate for a loan by outlining your qualifications. I am in need of a new bicycle as my old one is broke beyond repair and this is the mode of transport to commute to work. It is important that you are offering a clear honest and transparent explanation as to how you intend to utilize the money you intend to borrow. I have been working for this bank for the last 20 years and each month payment is sent to my checking account. Furthermore i have a savings account which has where i save a substantial sum every month.

A loan request letter is a letter written by a loan applicant and addressed to a lending institution generally sent as a part of the loan application process. A loan request letter introduces you to the bank or other lending institution clearly describes your planned use for the loan funds and describes how you will pay back the loan. Application for loan to purchase a new bicycle. Loan application for 100 000. You may also see. Explain in detail the reason for borrowing money.

Observe the proper rules on writing formal letters. Dear loan officer s name i am writing this letter formally requesting for favorable consideration of my loan request. The lender uses the information in the letter to establish the eligibility of the applicant for the loan. Wright i would like to request you if you could please grant me a loan of 800 as a personal loan as i need to purchase a new bicycle. Here are some guidelines to help guide you in writing a effective loan application letter. State your intent to borrow a specific amount of money.