Sample Loan Restructure Letter

I hope this letter finds you well. I am writing to formally request a restructuring of my current loan agreement with [Bank/Financial Institution's Name]. Due to [specific reason for requesting a restructure, e.g., unforeseen financial difficulties, significant changes in income, etc.], I am finding it increasingly challenging to meet the original terms of the loan.

Current Loan Details:

• Loan Account Number: [Your Loan Account Number]
• Original Loan Amount: [Original Loan Amount]
• Current Outstanding Balance: [Current Outstanding Balance]
• Monthly Payment Amount: [Monthly Payment Amount]
• Interest Rate: [Interest Rate]
• Loan Term: [Original Loan Term]

Requested Restructure Terms:

1. Modification of Interest Rate: I am requesting a reduction in the interest rate from [current interest rate] to [requested interest rate]. This adjustment would help lower my monthly payments and make them more manageable.

2. Extension of Loan Term: I would like to extend the loan term from [current loan term] to [requested loan term]. This would help in reducing the monthly payment amount and provide me with the necessary breathing room.

3. Adjustment of Monthly Payments: I am proposing a new monthly payment amount of [proposed new payment amount]. This adjustment reflects my current financial capacity and will help ensure timely payments.

4. Forgiveness of [specific type of fee/penalty if applicable]: If possible, I request a waiver of any late fees or penalties incurred during this period.

Supporting Documentation:

I have attached the following documents to support my request:

• Recent pay stubs or proof of income
• Bank statements for the past [number of months]
• A detailed budget outlining my current financial situation
• Any other relevant documentation

I am committed to fulfilling my obligations under the restructured loan terms and am hopeful that we can reach an agreement that accommodates my current financial situation. I would greatly appreciate the opportunity to discuss this request in more detail at your earliest convenience.

Thank you for your attention to this matter. I look forward to your favorable response.

Sincerely,

[Your Full Name]
[Your Address]
[City, State, ZIP Code]
[Your Phone Number]
[Your Email Address]