Loan Application Letter
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A loan is money borrowed from a bank or an organization, which has to be repaid within a certain period, and is given at a certain rate of interest. The receiver of the loan is liable to the bank, organization or person, who sanctions this loan, and has to repay the actual amount with the rate of interest charged. The banks or organizations sanctioning the loans need a written application by the applicant. The applicant has to thus write a loan application letter, and provide all the necessary documents to help process the application further.
An individual opts for a loan for various reasons -
The need may be different, but the format of application letter written while applying for a loan remains the same. There are two sample loan application letters given below. The first letter is a loan application for buying a house, and the second is an educational loan application
1. Sample loan application letter - Home loan
7th October, 2011
Subject: Application for home loan
Dear Mr. Jack,
I am Veronica Ray, and this is with reference to my home loan request. I request you to sanction my home loan of $150,000.
I am working as a Secretary in Apex Firms, and I stay in the Women's Hostel, California, since the past two years. I now wish to get my family here, and thus need to buy a house. I have my savings that would help me to give a down payment of 25% as per the T&C of the bank. I am getting some help from my employer as well. I thus do not need the remaining 75%, but only a home loan of $150,000.
I have attached my employment details, bank statements and salary slip for your reference.
Kindly consider my application and sanction the loan at the earliest.
2. Sample loan application letter - Educational loan
An education loan is used by a student and usually the student applies for this loan to pursue his/her higher studies, or to go overseas for some particular course. The banks approve student loans, and the rates of interest and repayment terms and conditions vary from normal loans. The repayment conditions are comparatively lenient, and the rates of interest are also usually less as compared to other loans. To apply for this loan, a student needs to provide his/her academic details, course details (the course he/she would use the loan for), and some other documents probably from the college, confirming the admission, etc. The sample letter given below serves as a ready reference.
7th October, 2011
Dear Mr. Jack,
I am Shelly Ray, and I wish to apply for an education loan with your bank. I have completed my graduation, and need this loan to complete my masters.
I have completed my graduation in Architecture and wish to pursue a Construction Management course from St. John's Management School. I have cleared their entrance exam, and am allowed admission to this course. St. Johns is the best college offering this course. The course fee is $75,000 annually, and the duration of the course is 2 years. The fee includes tuition expenses, library facility, accommodation and miscellaneous expenses. This course will help me widen the scope of my career, and get a good job. I have had a good academic background. I have always secured A or A+ grades in my graduation. This course will help me get a deeper insight in Architecture and Construction.
I have attached all the required documents herewith. Kindly approve my application. The last date for paying the fees is 25th October. Please process this application at the earliest.
Thanking you in anticipation.
Using these sample loan application letters, write a letter and apply for any loan. Also, you can review Cover Letters for Application and Format Letters Sample for Application for more cover letter samples.