Subject: Request for Temporary Reduction of Loan Payment Amount — Urgent Assistance Required [Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date] [Loan Creditor's Name] [Loan Creditor's Address] [City, State, ZIP] Dear [Loan Creditor's Name], RE: REQUEST FOR TEMPORARY REDUCTION OF LOAN PAYMENT AMOUNT I hope this letter finds you in good health and high spirits. I am writing to you in a state of financial distress due to unexpected circumstances that have significantly affected my ability to meet the current monthly loan payment obligations. In light of these unforeseen circumstances, I kindly request your understanding and consideration in temporarily reducing the monthly loan payment amount for a specified period. Firstly, I would like to express my deep appreciation for your assistance throughout the loan process. Your financial support has enabled me to undertake important tasks, such as [briefly mention the purpose of the loan]. Unfortunately, due to [mention the unforeseen circumstances in detail, for example, sudden job loss, medical emergency, unexpected home repairs, etc.], my financial situation has been severely impacted. In order to overcome this temporary setback and ensure the continuity of loan repayment, I am kindly requesting a temporary reduction in the monthly installment amount. By granting this request, it would allow me the necessary breathing space to stabilize my finances and diligently work towards full loan repayment in adherence to our initial agreement. I understand that modifying the loan conditions requires your approval. However, I wish to assure you that this is a temporary request and that I remain fully committed to fulfilling my financial obligations to the best of my ability. I am hopeful that with your expertise and understanding, we can negotiate a reasonable and mutually beneficial solution. To help facilitate this request, I am open to considering various options, such as: 1. Lowering the monthly payment amount for a specific period, while maintaining the original loan term. 2. Extending the loan term, which would increase the overall duration but reduce the monthly payment burden. 3. Deferring a portion of the payment to the end of the loan term, allowing me to focus on the immediate financial challenges. I firmly believe that our collaboration can result in a temporary solution that benefits both parties involved. I kindly request that you evaluate my request promptly and provide your response in writing as soon as possible. Should you require any additional information or documents to support my request, please do not hesitate to contact me. Thank you for your understanding, compassion, and assistance during this challenging phase. I am genuinely grateful for your support and sincerely hope for a positive outcome to this matter. Yours sincerely, [Your Name]
Kentucky Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount
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How to fill out Sample Letter For Request To Creditor For Temporary Reduction Of Loan Payment Amount?
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Subject: Request for settlement of my loan. Dear Sir / Madam, I am the holder of Savings/Current Account, A/C No..... (Account Number) in your bank. I was granted a personal loan / business loan / vehicle loan of Rs 10,00,000 by your bank and the repayment period is 5 years and interest rate is 13 percent per annually.
Dear Creditor: Due to a layoff, I am temporarily out of work and am experiencing financial difficulty. Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt.
Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt. By that time I hope to be back to work. If my situation improves sooner, I will notify you at that time.
Contact the creditor you've selected and ask the requirements for a letter of credit. You'll need to follow the creditor's procedures to get your letter. Provide any documents the creditor requests, such as the agreement you have with the seller and your financial documents.
Financial hardship may be deemed to exist when the debtor needs substantially all of his or her current and anticipated income and liquid assets to meet current and anticipated ordinary and necessary living expenses during the projected period of collection.
Tips for Writing a Hardship LetterKeep it original.Be honest.Keep it concise.Don't cast blame or shirk responsibility.Don't use jargon or fancy words.Keep your objectives in mind.Provide the creditor an action plan.Talk to a Financial Couch.
Due to (Mention reason- Financial problem/ Personal reason/ any other reason), I request you to kindly allow to make the remaining payment in installments i.e (Amount) every (Month/ Week) in order to clear off the debt.
I am requesting that you accept payments of $paid on the. I assure you that I will add no further debt until my financial situation improves. I will begin making normal payments again as soon as possible. I regret that I have to ask for this consideration and hope that you will understand.
I sincerely want to keep regular EMI payments but require restructuring in the terms of the loan. I request that the monthly EMI payments to be reduced so I can pay my EMI on before due date in the future without any failure. I would appreciate if you could restructure the EMI amount of my loan to about Rs.
A "hardship letter" is a letter that you write to your lender explaining the circumstances of your hardship. The letter should give the lender a clear picture of your current financial situation and explain what led to your financial difficulties. The hardship letter is a normal part of the loss mitigation process.
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