Sample request letter format to bank to not put you under defaulter list
Do you failed in repaying your loan? Is your bank going to add you in its defaulter's list? Are you planning to write an application to your bank manager requesting him not to put your name in its defaulter list? Read this article to know the sample application form for this purpose.
Human heart is full of desires- be it to own a car, a house, a luxurious marriage or whatever. And easily available loans have made it simpler to fulfill your dreams. But what to do if you fail to meet your loan obligations? Such failure could be due to various reasons like loss of job, a sudden accident, fire or any other mishappening over business premises, etc. In such a case, bank puts you under its defaulter's list or insolvent/ bankrupt list. (Please note that proper word here is 'defaulter' only. But many people confuse this word with insolvency and bankruptcy, hence I am using these words too.)
But running away from your lender/ financial institution is not a solution. In most cases, a good communication brings good and favourable results for both parties. Likewise borrower, lender also intend to make mutual settlement as it prevents an addition to its Non-Performing Asset (NPA) portfolio. Hence you can write an application to your bank manager using any of the sample form here.
Sample application form to bank manager to not put your name in defaulter list
To,
The Manager,
____ Bank
____ City.
Subject: Mutual settlement of loan against current A/c no. 1234567890
Respected Sir,
This is to state that I had taken loan against stock for my house. I had paid all my EMIs till _____ (mention date until which you paid all your EMIs on time) regularly on time without any default. But I met with an accident which made me unable to pay further installments and interest. Hence I request you to defer my payment for 4 months. I shall pay all my installments and interest incurred thereafter.
Thanking you.
Yours sincerely,
NAME
ADDRESS
ACCOUNT NUMBER
DATE
(Note- I have used the term 'defer my payment' in above proforma. 'Deferring the payment' means that bank will provide you temporary relief for few months. But it may charge penalty or extra interest.)
Please note that we are providing sample format only. You need to replace your actual reason of non-payment and why you should be excused with your actual reason. Also replace the solution which you want from your bank authorities. For your knowledge, I want to mention the solutions available with you. You can opt for deferring of payment (meaning mentioned above), rescheduling of your debt (bank lowers down amount of EMI but increases the loan tenure and high amount of interest outgo in long term), one time settlement (you can sell your any asset and make one time settlement. This will cut down your interest cost too), offer any security to bank in case your loan is unsecured (as a result of which your EMI and interest burden will also fall down).
Another proforma could be like this.
To,
The Manager,
____ Bank
____ City.
Subject: Request to reschedule my debt against A/c no. 1234567890
Respected Sir,
This is to state that I had taken loan against my house for purchasing a car. But the recession made me lose my current job. Hence I am jobless nowadays and have little savings only in my hands. Therefore, I request you to reschedule my debt and lower the amount of my EMI from Rs. 10,000 per month to Rs. 4,000 per month.
Thanking you.
Yours sincerely,
NAME
ADDRESS
ACCOUNT NUMBER
DATE
In above mentioned case of rescheduling of your debt, you can request again your bank whenever you get economically stable again (like you get a good job) to increase your EMI or prepay your loan.
Follow
I appreciate the author for bringing out this format of letter to request the bank not to put the account under the defaulter list. Normally banks have field officers who have granted the loan and they would pursue the issue of payment too. Bankers are always good towards the regular customer and if the genuine reasons are given and time is taken for the repayment, they shall give additional time. But while going to request for the additional time it is better to pay some amount on that day to building confidence and keep good relations with the bank.