Foreclosure Letter
The best thing about EMIs is that it allows you to pay the loan amount in parts. However, if you have enough amount at the moment then you can pay a lump sum amount instead of EMI. In other words, it is called Foreclosure. Besides, foreclosure allows you to save money on the total loan amount. And to do so, firstly you have to write a foreclosure letter to the body. Therefore, today we will see how to write a foreclosure letter.
How To Write A Foreclosure Letter?
When you write a Forclosure letter to a bank, you have to follow a designated format. In fact, the format of the Foreclosure letter is the same as for instance applying for DD cancellation. You need to write the Foreclosure letter to the branch manager. Also, make sure you state the reason for foreclosure very clear and concise.
Additionally, you have to mention the loan account number, your name, and other details.
For your reference, we have includes a few samples of writing a Foreclosure letter. Hence, refer to and use them while writing a letter to the bank.
Guidelines For Writing a Foreclosure Letter
- Address the letter to the head of the financial institution. For example, if you are writing to the bank, then address the letter to the bank manager.
- Subject must be on point.
- In the body, always mention your name and loan account number.
- If you don’t know the foreclosing procedure, then ask them to guide you.
- In case you have paid the remaining loan amount, then mention the payment details.
- This includes payment mode, amount paid, date, copy of receipt, etc.
- Additionally mention your contact number in the letter.
- finally, conclude the letter with regards or sincerely.
Format Of Writing A Foreclosure Letter
Your address
City – Pincode
Date: dd/mm/yy
The Branch Manager
Branch address
Sub: Request for ____ Loan Foreclosure
Dear Sir/Madam,
I XYZ, holding a loan account in your branch with account number 7618xxxxxx0991.
I am currently having a loan of INR xx,xxx for (state the reason). To sum up, I am writing this letter to inform you that I wish to foreclose the loan. Moreover, my loan ID is xxxxx and I opted for (no. of EMIs) EMIs. Therefore, I am willing to pay ______ (Amount)in a single installment and foreclose the loan.
Therefore, please guide me through the process of foreclosing the loan. Thank you in advance.
Yours Sincerely,
(Signature)
Contact number – 9111111111
Sample For Writing A Foreclosure Letter
Sample 1- education loan.
56, Aparna Apartment
Sharad Colony,
Pune – 118821
Date: 09/08/2022
Bank Of Baroda
Sharad Colony
Sub: Request for Education Loan Foreclosure
I Anand Talmale, having a savings account in your branch with account number 8311xxxxxx9119. To sum up, I have written this letter to forclose my remaining loan amount.
I am currently having an educational loan of INR 1,00,000 in your branch. Moreover, my loan ID is 881120 and I had converted the loan into 10 EMIs. In fact, I have already forfeited 5 EMIs.
Furthermore, I would like to pay the remaining amount in one go and foreclose the loan.
Hence, I request you to guide me through the process of foreclosing the loan.
In case you need any other information, my contact number is 9128111111. Also, I have attached a copy of my PAN card and address proof for your reference.
Anand Talmale
Contact number – 9128111111
Email id: [email protected]
Attachments:
- Address proof
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Sample 2- Home loan
If you have a joint account for home loan, you can consider this format for home loan foreclosure letter.
44/d, Indrayani appartment
Lokmat Square
Nagpur – 440014
Shivaji Nagar Branch
Nagpur – 440010
Sub: Home Loan Foreclosure Letter
We, Suman Sharma and Arpan Sharma, wife and husband respectively, have a joint account in your bank. Also, currently we are holding a home loan with the loan account number 199288777.
However, we wish to foreclose our home lone. Therefore, we are willing to pay the outstanding loan amount of INR 5 lakh at one go.
Hence, we request you to do the needful and walk us through the other procedure.
For instance, we have attached our PAN card copies, and address proof for your reference.
Yours sincerely
Suman Sharma
Contact number: 9000000000
Apran Sharma
Contact number: 91111111111
Attahced documents:
How To Obtain a Loan Foreclosure Letter From Bank?
- Firstly, write a foreclosure letter to the bank. Also, mention and attach the loan account number, copy of PAN card, and address proof.
- Once the bank receives your letter, they will calculate the amount you still need to pay.
- The bank will inform you the amount and then you will have to make payment via NEFT, RTGS, or cheque.
- Additionally you need to pay some charges for foreclosing the loan.
- Also, you need to give a no-dues certificate along with necessary documents.
Frequently Asked Questions
Q1. What do you mean by foreclosure letter? Answer. When you repay or wish to repay the remaining outstanding loan amount in one go, then you need to write a foreclosure letter.
Q2. How long does it take to get a foreclosure letter? Answer. You may receive the foreclosure letter within 15-30 days after foreclosure. Still, you need to take follow ups from the lender. Once you receive the certificate, make sure every detail is correct.
Q3. Does foreclosure of loan affect cibil? Answer. No. if your credit score is good, then foreclosing a loan will not impact it. Additionally, it creates a good impact to future lenders about your commitment for repaying the loan.
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Home Loan Foreclosure Letter Formats in Word
If you decided to foreclose your loan by paying the pending amount in a single payment then you need to write a request letter to the bank (or) financial institution to foreclose that loan.
- Required details on loan forclosure letter
- Home loan foreclosure letter
- Home loan foreclosure letter for joint account
- Home loan foreclosure request letter
- Home loan foreclosure request email
- How to write a home loan foreclosure letter
Required Details on Loan Foreclosure letter
- Name of the borrower (your name).
- Loan account number.
- Outstanding loan amount.
Home Loan Foreclosure Letter
To The Branch Manager, Bank Name, Address.
Sub: Home Loan foreclosure request
Dear Sir/Madam,
I [your name] currently have a home loan in your bank, bearing loan account number [loan a/c number]. Now I want to foreclose that loan.
I have cleared all the outstanding loan amount of Rs. ______________ through net banking on [date] , please find the payment receipt enclosed with this letter.
I am aware of the applicable loan foreclose charges.
Therefore please close my home loan and issue all the required documents.
Regards, Your name.
Home Loan Foreclosure Letter(for Joint Account Loans)
To The Branch Manager, Bank name, Address.
Sub: Request for home loan foreclosure.
We [husband name] & [wife name] , husband and wife respectively have joint home loan account in your bank under loan a/c no. _____________.
Now we want to foreclose our home loan, and we paid the outstanding loan amount of _______ Rs by cheque bearing cheque no. _____________ dated ______. [cheque date].
We are aware of the loan foreclosure charges.
Therefore we hereby request you to kindly close your home loan and issue us all the required documents.
Thanking you.
Sincerely, Borrower name & signature, Co-borrower name & signature.
Home Loan Foreclosure Request
Sub: Home loan foreclosure request letter.
My name is [your name] , currently have a home loan in your bank bearing loan a/c no. ___________. I would like to foreclose my home loan this month by paying the outstanding amount in a single payment.
Till now I have paid __ EMIs, and the remaining EMIs are pending until the year _____.
Here I request you to kindly let me know the remaining loan amount which I have to pay to foreclose my loan and also the procedure of loan foreclosure in your bank.
You can contact me on my mobile no. ___________ (or) my email id _________________.
I shall be thankful to you in this regard.
Thanking you in advance.
Regards, Your name. Mobile no.
Home Loan Foreclosure Request Email
Sub: Home loan foreclosure enquiry.
I [your name] , currently have a home loan in your bank since [date of loan] under loan a/c no. _______.
I am looking forward to foreclosing my home loan this month but I don’t know the procedure. So please guide me on how to foreclose my loan and I am ready to pay the foreclosure charges.
I look forward to receiving your response.
Yours sincerely, Your name, Mobile no.
How to Write a Home Loan Foreclosure Letter
- Address the letter to the branch manager of the bank (or) financial institution in which you have taken the loan.
- Place subject line as ” Request for home loan foreclosure”.
- Write your name and home loan account number.
- If you have already paid the balance loan amount then you have to mention the payment details on the foreclosure letter. The details are like a mount paid, payment mode, date, copies of bill receipts . If you paid through cheque then mention the cheque number and date.
- If you haven’t paid the loan amount and don’t know the foreclosure procedure then make a request to guide you about the foreclosure process.
- Give your contact details at the end of the letter.
- Finally, end the letter with letter closings like sincerely or regards.
What is a home loan foreclosure request?
Loan foreclosure/pre-closure means you are ready to pay the remaining loan amount in a single payment even before the tenure date.
What are the loan foreclosure charges?
These charges vary from one bank to another bank, here is the list of loan foreclosure charges in different banks .
Does loan foreclosure affect my CIBIL score?
No, foreclosing a loan doesn’t affect your CIBIL.
Is loan foreclosure is good or bad?
Loan foreclosing is good, it gives financial freedom and great relief so that you can be more productive in your life.
Recommended:
- Loan closure letter format in word.
- SBI home loan closure letter format in word.
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Loan Closure Letter Format & Sample In Word, Pdf
Loan Closure Letter Format: Are you searching for some of the Best Loan Closure Letter Format Sample In Word & Pdf? If Yes, then here you will get these types of application letter sample.
Let me tell you first, To close an account with the bank from which you took your loan, follow & read their terms and conditions very carefully.
Then write the account closure request letter using the application samples given below. Submit with it some documents (e.g. Personal Loan account number, approval letter, other documents issued by the bank) and Identity proof (e.g. Passport, PAN card, Aadhar).
If the bank has any pre-closure amount, then they have to pay it. Then in a few days, the bank will send you the loan completion document. After that all the process of closing your loan account will be completed.
The letter samples given below can be used for any bank without any problem. For example, you can use them in the case of HDFC personal loan closure letter format or SBI home loan closure letter format.
Personal Loan Closure Letter Format
To, The Branch Manager (Bank Name), (Bank Address), (Date).
Subject: Request Letter For Loan Closure.
Dear Sir/Madam,
I, ___________(Write Your Name) have a personal loan in my account on your _______ (Mention Your Bank Name) bank. I am writing this application letter to request you to close my personal loan account bearing account number ____________ (Mention Your Loan Account Number). The reason for closure is ___________ (Mention the reason for the closure correctly here).
I would like to inform you that I have paid all the EMI, loans. You can check your records. As per the requirements of the bank, I am attaching the applicable documents with this application.
Kindly consider this request letter and do the needful as soon as possible.
Thanking you,
Yours Faithfully, (Your Legal Name), (Your Address), (Your Email), (Your Mobile).
Car Loan Closure Letter Format
To, The Bank Manager (Name of the Bank ), (Branch Address), (Date).
Subject: Closure of the car loan account.
Respected Sir/Madam,
I am writing this letter to state that, I am holding an auto/vehicle/car loan bank account in your ________ (Mention Your Bank Branch Name) branch.
All details of my account are listed below: Loan Account Holder Name:- Loan Account Number:- Loan Approved Amount:- My PAN Number:-
Currently, I am willing to pay all my remaining amount and at the same time, I want to close my loan account.
So I request you, please let me know the detailed process and necessary documents for it. So that I can pay the remaining amount quickly and close the account.
Thank you in advance.
Yours Truly, (Your Name), (Full Address), (Your Contact Details).
Home Loan Closure Letter Sample
To, The Branch Manager, (Bank Name), (Branch Name), (Branch Address), (Date).
Subject: Application for home loan.
With due respect, I Beg to say that I hold a loan account & account no is ___________ [Mention Your Bank Account No] with your __________ [Mention Your Branch Name] branch. For some personal reason, I want to close my home loan account. (You can specify the reason for this closure)
Therefore, you are requested to kindly close my account. I will always be grateful to you. If any other information or documents is required for it, kindly contact me on my mobile number. my mobile number is ____________ (Mention Your mobile Number).
Thanking You.
Yours Sincerely, (Your Name), (Address), (Your Account Details), (Contact Details).
Loan Closure Letter HDFC, SBI & ICICI
To The Bank/Branch Manager, [Bank Name], [Bank Address], [Date:__/__/__].
Subject: Personal/Home/Car loan closure application letter.
With due respect, I ______ [Your name], I am writing this letter to request that I want to close my personal/home/car loan associated with loan account no _______ [Mention your loan account no].
Now, that I am already paid my total due & I request you to please go through the process of pre-closing my loan.
If you need any additional information or documents to complete this process, you can let me know at the phone number below.
Yours Sincerely, [Your Name], [Phone Number], [E-mail Address].
Read Also: Application For Closing Bank Account Letter
Application For Closing Loan Account
To The Branch Manager, [Name of the Bank], [Branch Address],
Date: Day/Month/Year.
Subject: Loan account close application.
Most respectfully I beg to state that, I ______ [Your name], I am a saving account holder in your branch. Also, I have a loan account & my loan account number is ________ [Mention your account no]. I want to close my loan account for some personal reasons.
Therefore, I request you to close my loan account and provide me with all the original documents that I submitted when applying for the loan account.
We hope you’ll consider my request properly and begin the process of closing the account as soon as possible.
Yours Sincerely, [Signature], [Contact Details], [Address].
Loan Closure Letter Format Sample In Word & PDF
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FAQ’s On Loan Closure Letter Format Sample
How do you close a loan account? You can easily close your loan account by following the steps given below –
- Visit the bank with all required documents.
- Write a loan closure letter to the bank manager OR, You may be required to fill a form.
- If there is a pre-closing amount, then pay it.
- Return your credit card. (If issue)
- Take acknowledgment paper from your bank.
- Then your loan account will be closed automatically in a few days.
Which bank is best for personal loan? Below we have mentioned the names of some of the best banks in India for taking loans –
- State Bank of India (SBI): Interest Rate- 9.60% onwards , Loan Amount- Up to Rs. 20 lakh .
- ICICI Bank: Interest Rate- 11.25% onwards , Loan Amount- Up to Rs. 20 lakh .
- HDFC Bank: Interest Rate- 10.75% onwards , Loan Amount- Up to Rs. 40 lakh .
- Bajaj Finserv: Interest Rate- 12.99% onwards , Loan Amount- Up to Rs. 25 lakh .
- Axis Bank: Interest Rate- 12% onwards , Loan Amount- Up to Rs. 15 lakh .
Can we close HDFC loan online? Unfortunately, you cannot close our HDFC Bank loan online, for this, you need to visit your nearest HDFC Bank and close the loan account. Also, you need to pay a certain amount to pre-close your loan.
Is there any pre-closure charges for home loan in SBI? No, you don’t have to pay any penalty for pre-closing your SBI home loan on fixed and floating rate interest. However, you may have to go to any branch of SBI and fill up some forms for it.
Online receipt makers can help you create professional receipts for loan closings. These tools let you customize the template, add your logo, and track receipts. Using a Zintego online receipt maker can help you create a clear and concise receipt that meets all of the necessary requirements.
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