Simple Personal Loan Application Letter

I am writing to formally request a personal loan of [Loan Amount] from your esteemed institution. I have been a customer with [Bank/Institution Name] for [number] years, and I am seeking this loan to [briefly state purpose, e.g., consolidate debt, cover medical expenses, fund home renovation].

Purpose of the Loan:
The loan will be used for [detailed explanation of the purpose]. For example, if the loan is for home renovation, describe the specific projects or improvements you intend to make, such as upgrading the kitchen or bathroom, repairing the roof, etc.

Repayment Plan:
I am proposing to repay the loan over a period of [number] months/years. Based on the current interest rates, I estimate my monthly payment to be approximately [amount]. I am confident in my ability to manage these payments as I have a stable income and a solid financial background.

Financial Background:
I am currently employed at [Your Employer's Name] as a [Your Job Title], earning [Your Monthly Income]. I have [number] of dependents and my total monthly expenses amount to [amount]. My credit score is [credit score], and I have a history of timely payments on previous loans and credit accounts.

Additional Information:
Attached are copies of my recent pay stubs, bank statements, and proof of residence. If needed, I am happy to provide additional documentation or information to support my application.

I appreciate your consideration of my request and am hopeful for a favorable response. Please feel free to contact me at [Your Phone Number] or [Your Email Address] if you require any further details.

Thank you for your time and assistance.

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