By making an early payment of the complete outstanding amount, any loan account holder can appeal for the premature loan to be closed. In order to apply for the closure of the premature loan account, the loan holder will have to go through a procedure, and the first step is to write a foreclosure letter to the bank. To know the loan foreclosure request letter format, read the article till the end.
Table of Contents
- How to Write a Loan Foreclosure Letter to the Bank?
- Foreclosure Letter Format and Samples
- Home Loan Foreclosure Letter
- Home Loan Foreclosure Letter for Joint Account
- Frequently Asked Questions on Foreclosure Letter
How to Write a Loan Foreclosure Letter to the Bank?
Writing a letter to the bank for any purpose follows a specific format. Even if you are applying for a bank statement or writing a loan foreclosure letter, you need to follow the format for the same. For the purpose of closing your loan account permanently, you will have to write a loan foreclosure letter to the branch manager stating the reason behind the closure. Do not forget to mention your account details, name, loan account number, etc.
Because of the procedures, some people find it difficult to write a bank application. We have included some samples of foreclosure letters, as well as some examples of house loan foreclosure letter formats, to make things easier. To learn more, continue reading.
Foreclosure Letter Format and Samples
The loan foreclosure request letter format is pretty simple if you have all the details with you. The person applying for the closure of the loan account will have to state the reason behind the closure and follow the format for writing the letter.
If a person is willing to close the premature home loan account, then they will have to follow the home loan foreclosure letter format and write a letter to the bank. We have provided a few samples of loan foreclosure letters for a better understanding of the format. In order to write a foreclosure letter for a home loan, refer to the below samples.
Home Loan Foreclosure Letter
In case a person wants to write a home loan foreclosure letter to the bank, they can refer to the below-provided sample.
#57 Saheed Nagar
The Branch Manager
State Bank of India
#44, Bandra Branch
Bhubaneswar – 751007
Sub: Request for home loan foreclosure
I am Nisha Mittal, and I currently have a home loan against my account number (mention your account number). I want to foreclose my home loan this month by paying the outstanding amount in a single payment.
I have paid 8 EMIs as of now, and there are 5 EMIs pending until this year.
I request you to please inform me about the home loan foreclosure procedure at your bank as well as the remaining loan balance that I must pay in order to foreclose my home loan.
Sharing my contact information in case you require any more information.
Mobile number: 123456
E-mail address: firstname.lastname@example.org
Waiting for your response.
Home Loan Foreclosure Letter for Joint Account
If there is a joint account for a home loan and they want to write an application to close the loan account, they can follow the below-mentioned home loan foreclosure letter format.
The Branch Manager
Name of the Bank
Sub: Home loan foreclosure request letter
With utmost respect we, _____ and ____ husband/father/mother and wife/daughter (any relationship) respectively run a combined home loan account in your bank under the loan account number _____________.
We now want to foreclose on our home loan, and we paid the outstanding loan amount of Rs.___ via check with number ____ dated ___.
We are aware of the charges applicable on the foreclosure of loan accounts as a part of your policy.
We request you to kindly do the needful to close the above-said home loan account and provide us with the relevant documents.
Borrower name & signature
Co-borrower name & signature
Frequently Asked Questions on Foreclosure Letter
What is meant by a foreclosure letter?
When a borrower repays the entire outstanding loan amount in one payment rather than in EMIs, they need to write a letter for the foreclosure of the loan, which is known as the foreclosure letter.
Are there any foreclosure charges deductions?
Yes, there will be foreclosure charges which will be deducted as a part of the bank’s policy.
What are the advantages of a loan foreclosure?
Prepaying your current personal loan in full or foreclosing it is deemed favourable and can help you raise your CIBIL score. An enhanced credit score can help you conclude your next loan application faster and negotiate better terms with the lender.