Loan Repayment Letter to Bank

I am writing to formally request a review and modification of my current loan repayment terms. I have been a valued customer of your bank for several years, and due to unforeseen circumstances, I am currently facing financial difficulties that make my existing repayment schedule challenging to maintain.

Loan Details:

• Loan Account Number: [Your Loan Account Number]
• Loan Amount: [Original Loan Amount]
• Loan Term: [Original Term]
• Monthly Payment Amount: [Current Monthly Payment]

Reason for Request:
Due to [briefly explain your situation, e.g., job loss, medical expenses, etc.], my financial situation has changed significantly. As a result, it has become increasingly difficult for me to meet the current repayment obligations. I have taken steps to manage my finances better, but I believe that adjusting the repayment terms will provide significant relief and help me avoid default.

Request for Modification:
I respectfully request that you consider the following modifications to my loan repayment terms:

1. Extension of Loan Term: Extending the loan term by [number of months/years] to reduce the monthly payment amount.
2. Reduction in Monthly Payment: Reducing the monthly payment amount to [proposed amount].
3. Interest Rate Adjustment: If possible, adjusting the interest rate to a more manageable level.

I am committed to repaying this loan and believe that with these adjustments, I will be able to continue making payments without compromising my other financial responsibilities. I am open to discussing alternative solutions or any documentation that you may require to process this request.

Thank you for your understanding and consideration. I look forward to your positive response and am hopeful that we can reach a mutually agreeable solution.

Sincerely,
[Your Full Name]
[Your Contact Information]
[Your Address]