Sample Loan Settlement Letter to Bank

[Date]

[Bank's Name]
[Bank's Address]
[City, State, ZIP Code]

Subject: Loan Settlement Request

Dear [Bank's Name/Loan Officer's Name],

I hope this letter finds you well. I am writing to formally request the settlement of my loan account with your institution. Below are the details of my loan and my settlement request:

Loan Account Number: [Your Loan Account Number]
Loan Type: [Type of Loan, e.g., Personal Loan, Home Loan]
Outstanding Balance: [Current Outstanding Balance]
Date of Loan Disbursement: [Loan Disbursement Date]

I am seeking to settle the loan in full and request a final settlement amount from the bank. Kindly provide me with a detailed statement showing the exact amount required to close the loan, including any applicable penalties, fees, or adjustments. I would appreciate it if you could include information on how to process this settlement payment.

Settlement Terms and Conditions:

1. Total Amount Due: Please provide the total amount required to settle the loan in full, which should include any interest accrued up to the settlement date.

2. Settlement Discount: If applicable, please indicate whether there are any discounts or reductions available for early settlement of the loan.

3. Payment Instructions: Kindly outline the payment methods accepted for the settlement and any necessary procedures to follow.

4. Confirmation of Settlement: Once the payment has been processed, please confirm in writing that the loan has been settled and that no further obligations remain. This confirmation should include a statement of account closure and release from any liabilities.

I am committed to resolving this matter promptly and am prepared to make the settlement payment upon receiving the details. If there are any forms or additional documentation required from my side to facilitate this process, please let me know at your earliest convenience.

Thank you for your attention to this matter. I look forward to your prompt response with the necessary details for completing the settlement of my loan.

Yours sincerely,

[Your Full Name]
[Your Signature (if sending a hard copy)]