How to draft a letter for a bank loan

Writing a letter for a bank loan is an often overlooked, but important step of the loan process. Bank loan letters are best used before or during the application decision process, but can be used to try to overturn a denial. Bank loan letters work best for a lender who has a more personal interest in your financial future, such as your bank or credit union. However, these letters can be used for loans you apply for online or over the telephone.

Write down, using a notebook or computer word processing program, any special circumstances you think might influence the lender's decision. For example, if you have negative entries on your credit report caused by a job loss or sudden illness, explaining that in a letter may help the bank overlook those credit blemishes.

Type the bank loan letter in a computer word processing program. Always begin the letter with "Dear (Person's Name)." Try to get a specific person to address your letter to. In the case of dealing with an online or telephone-based lender, call the customer service department and ask who handles loans. If you cannot get this information, then write something such as "Dear Loan Representative."

Write in the letter any helpful personal information, such as how long you have lived in the community or that you have worked for the same employer for a number of years. This helps personalise the bank loan request and portrays you as an honest person with long-lasting ties to your city or town. Finish the letter with something along the lines of, "Thank you for your time. I hope this merits serious consideration." Then end the letter with "Sincerely, (Your Name)."

Print the letter. Either deliver it to the bank or credit union, or fax it to an out-of-town financial institution.

Call the person or department you sent the letter to the next business day to ensure it was received.

Write a thank-you letter if you get the loan, or a reconsideration letter emphasising any special circumstances if your application receives a denial.


Remember to be honest in the letter without using unnecessary flattery.


Do not constantly call or write regarding a loan application. Desperation turns lenders off.

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About the Author

Stephanie Mojica has been a journalist since 1997 and currently works as a full-time reporter at the daily newspaper "The Advocate-Messenger" in Kentucky. Her articles have also appeared in newspapers such as "The Philadelphia Inquirer" and "The Virginian-Pilot," as well as several online publications. She holds a bachelor's degree from Athabasca University.

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