How to Write a Loan Letter?
A loan letter is a document that states a person's request or intention to borrow money from a bank account for some specific reasons. The bank manager decides whether to approve the person's request or not.
Statista said that banks in the USA granted loans amounting to $14.3 trillion in March 2020. These loan transactions stated various reasons. If you need a loan from a bank for your business or other needs, writing a letter is a great way to communicate your intention. In case you don't know where and how to start, read our tips below.
1. Get Info
You've seen loan offers in advertisements for sure. Banks offer these loans at heavily discounted rates at times. With that, get all the information you need to write this letter like, who to address, his or her name, designation, etc.
2. Share Your Intention
Begin your letter by introducing yourself and telling the bank manager the amount of money that you need to borrow. Give a brief explanation of your intention as to why you need the money. Remember that honesty is one of the keys to loan application transactions. Be transparent in writing this part; it serves as an appeal for you to get the money.
3. Give More Details
Write your professional background and significant work experience to support your intention for borrowing a huge amount of money. Bank managers need to know about the occupation or plan to determine if you can pay the borrowed amount back or not. If you'll lend money to start a business, add a market overview, and reasons why your chosen business will be profitable.
4. State Assets
Provide some information on your assets. You can use them as collateral in exchange for the money you need. These should be accurate or else you'd get into trouble.
5. Add Documents
Attach credible documents to your letter, such as financial statements and business plans. This allows bank managers to assess if you can pay the loan. Leave your contact information, so you can get updates regarding your transactions.