Sample Letter for Personal Loan Request Application

Below is a sample letter for a personal loan request. Before writing a letter, check to see if you actually need one. Getting a loan from a bank, company or employer may require you to fill out an application, but might not require a letter. Writing a letter, however, does provide the lender with a better understanding of your situation and the reason(s) why you need the extra money.

Also, keep in mind that institutions may not provide you loans with low interests rates if you have bad credit. If you have bad credit, it might be better to ask friends or family members for a loan. However, it is important to keep in mind that if you fail to pay them back, you will jeopardize the good nature of your relationship with them. Ask yourself, can you repay back the amount of loan that you intend to take out? How important is your relationship with your friends and family?

Personal Loan Request from Bank for Home Mortgage – Example

Dear John Doe,

I understand that your bank is responsible for giving out loans to potential homeowners who want to qualify for mortgages. I currently make an annual income of $40,000 working as an accountant at P.W. Partners. Using your mortgage qualifier calculator, I determined that I was eligible for a 30-year mortgage at 6.5% interest in the amount of $125,000. However, I am hoping to borrow $150,000 and wanted to ask you if this is possible.

My credit score is spotless and I’ve never had a late payment in the last 10 years. In addition, my wife works as a marketer and she makes $35,000 a year. Our combined income would amount to $75,000 a year, which would make us qualify to take out a higher amount of loans. However, my wife does not have very good credit because she had to declare bankruptcy 5 years ago when her cup cake business went under.

In addition to our annual income, we also own two SUVs valued at $45,000 and a fully paid for multi-family home valued on the market at $200,000 dollars. We are willing to put up these assets as collateral in the event that we default on our loan payment. We’ve also talked with our real estate agent and the owner of the home we are intending to purchase with the loan from your bank. I am willing to come to the bank to speak with you in further detail.


John Smith

Things to Keep in Mind

Your letter should be short and simple, however it should also be long enough to outline all the details and reasons for why you are requesting a loan. Be specific with numbers and never inflate or deflate estimates. You want to be truthful because if you’re not, the lender will eventually find out when they request for paper or online statements to verify your claims.

Never borrow more than you can pay back. Remember that there are interest rates that you must pay on top of the principal you are borrowing. This can add up significantly if you are paying everything back over a long period of time. Keep in mind that the faster you pay off your loans, the less you will ultimately pay in interest.

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