Writing a Personal Loan Paid in Full Letter (with Sample)
Use these sample personal loan paid in full letter as a template for your formal notification.
Writing a Personal Loan Paid in Full Letter
Personal loans are usually unsecured. This means that the lender cannot take any of the borrower’s assets to repay the loan if the borrower defaults on payments. For this reason, personal loans, whether from a bank, lending institution or a friend are harder to get and usually have a higher interest rate than a secured loan. When a borrower is making the last payment, he or she may send a personal loan paid in full letter. When the lender signs and returns a copy of this letter, it provides the borrower with proof that the whole amount of the loan with interest was paid on time.
When both parties agree on the terms of the loan, a repayment agreement may be created and signed. This agreement details the agreed-upon terms of how the loan will be repaid. It will usually contain the amount being borrowed, the amount of interest being charged by the lender and the length of time the borrower has to repay the debt in full. In some cases, a final date will be given. When the borrower sends a personal loan paid in full letter, he or she should make sure it covers all of the terms and conditions for the loan that are given in the paid in full agreement.
Below is a sample personal loan paid in full letter from the borrower to the lender stating that the loan has been paid in full. The borrower should send two copies of the letter by certified mail with a return requested and keep a copy for his or her records. The lender will sign one of the enclosed copies and return it to the borrower. The borrower can use this signed letter to prove the loan was repaid.
When both parties agree on the terms of the loan, a repayment agreement may be created and signed. This agreement details the agreed-upon terms of how the loan will be repaid. It will usually contain the amount being borrowed, the amount of interest being charged by the lender and the length of time the borrower has to repay the debt in full. In some cases, a final date will be given. When the borrower sends a personal loan paid in full letter, he or she should make sure it covers all of the terms and conditions for the loan that are given in the paid in full agreement.
Below is a sample personal loan paid in full letter from the borrower to the lender stating that the loan has been paid in full. The borrower should send two copies of the letter by certified mail with a return requested and keep a copy for his or her records. The lender will sign one of the enclosed copies and return it to the borrower. The borrower can use this signed letter to prove the loan was repaid.
Sample Personal Loan Paid in Full Letter
Name of Borrower
Address of Borrower
City, State, Zip Code
DATE
Name of Lender
Address of Lender
City, State, Zip Code
RE: Personal Loan Paid in Full
Dear Name of Lender:
This letter is a formal acknowledgement of the final payment of my personal loan for AMOUNT made on DATE. Enclosed please find a check for AMOUNT that is the last payment due. Kindly note that according to our loan repayment agreement the loan should be paid in full on or before DATE, and that this payment is made on DATE.
Therefore, my loan is paid in full according to the payment agreement terms, and I request that you acknowledge that the loan is fully repaid by signing an enclosed copy of this letter and returning it to me.
If you have any questions, I can be reached at Phone Number or at Email Address any day after 5pm.
Thank you for giving me the personal loan.
Sincerely,
Signature of Borrower
Printed Name of Borrower
List of Enclosures:
Check for AMOUNT
A copy of this letter to be signed and returned to the borrower
Place for the signature of Lender
Printed Name of Lender
DATE
By Andre Bradley
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