The borrower of the loan may not always be in a financially good position to pay the full amount of each installments to the lender. This might be because his income has gone down over a period.
Hence, the borrower can request the lender to either lower the interest rate on the loan or give him some moratorium period to pay the amount later.
Here are examples of such applications to the bank manager from the borrower requesting the bank to decrease the interest rate on the loan amount.
TEMPLATE #1 Date: ________ The Branch Manager _________ Bank _________ Branch Sub.: Request for reduction of interest rate on car/home/personal loan Dear Sir/Madam,I have obtained a car/home/personal loan from your esteemed bank as per the following details. I would like to humbly request you to lower the interest rate on the loan amount as it is becoming extremely difficult for me to pay the loan installments.
a) Loan account number: ____________. b) Principal loan amount: __________. c) Interest rate: ____% per annum. d) ___ installments paid out of a total of ___ monthly installments.I have been a loyal customer of the bank for over ___ years. I do most of my banking transactions through your bank. I have taken the said loan, as there was an urgent need for it to pay for (Purpose). I have always tried to pay the installments on time without fail. However, my income has gone down substantially because of the pandemic situation. Hence, it is now quite tough for me to pay the installments.
Therefore, I request your goodself to kindly lower the interest rate on the above-mentioned loan taken from your bank. I shall be grateful for your help.
Looking forward to a positive response. Have a nice day. Thanking you, Yours faithfully, (Signature) (Name of the Applicant) Mob. ___________ At: _______________ TEMPLATE #2 Date: __________ The Branch Manager _________ Bank _________ Branch Sub.: Interest rate on loan Dear Sir/Madam,We have obtained a term loan from your bank for an amount of _________ under loan account bearing number ___________. Currently, we are paying the loan at an interest rate of ___% p.a. We have already paid ___ installments on the loan taken.
It has come to our knowledge that other reputed banks are offering the same type of loan at an interest rate of ___% p.a., which is __% lower than what you are charging us.
We have been a loyal customer of your esteemed bank for over __ years now. We have always tried to honor our commitments to you in a timely manner. However, we are disheartened to note that we are being charged at a higher interest rate than what other banks are charging.
Therefore, we humbly request your goodself to reduce the interest rate on the loan from ___% p.a. to ___% p.a. We shall be grateful for your kind consideration in this matter.
