letter Requesting Repayment of a Personal Loan

What is a letter requesting repayment of a personal loan?

This letter is written when you want to ask someone to repay the amount that you loaned them at some point. In this letter, you politely ask for the repayment without being offensive.

Many people think that it is very hard for them to ask for the money they have loaned to someone. They feel that it might ruin their relationship with the other person who does not seem to repay the loan. However, this is not the case. If you manage to use a gentle tone and use appropriate words, you can demand the payment in a very kind and polite way without sounding offensive.

Things to remember:

If you are in the situation in which you have to write this letter and you feel that it is inevitable to write the request payment letter now, you should remember the following points:

  1. Make sure that you ask for the payment in a very polite way.
  2. Keep the letter brief.
  3. Don’t use such words that make you sound funny. The recipient will not take your letter seriously if you don’t show seriousness in your tone.
  4. Make sure that you have not made any grammatical errors in the letter.

How to write the payment request letter?

Here is a complete procedure that you can follow for writing an effective piece of the letter:

Give reason for asking for payment:

If you are conscious about your relationship with the recipient, you can simply provide the reason to him for asking for money. However, it is not mandatory. When the recipient has promised to return you and did not return because of any reason, you have a right to claim for repayment.

If you choose to give the reason, try to provide a sensible reason that does not offend the reader.

Mention the amount and time of the loan:

It is recommended that you mention the total amount the recipient is expected to pay. Also, mention the date when you loaned him. If you don’t remember the date, you can use time clauses to give a rough idea.

Mention how you want to receive the payment:

If you think that it would be difficult for the person to return you the entire money in one go, you can provide him with the option of installments. However, also tell him how you wish to collect the money.

Arrange a meeting:

Many people also ask the recipient to meet them somewhere for lunch or tea where they can discuss the loan and its repayment plan. They find it hard to articulate everything in the letter. This is the reason; they ask the recipient to arrange a meeting. However, if you think that your letter will be enough to say everything and you don’t feel the need to meet the recipient, you can omit this part.

Ask him to reply:

In the end, ask the recipient to reply to you and tell you when and how he will return the payment. Close the letter gracefully so that you don’t sound mean.

Sample Letter


Name of the recipient
Contact details of the recipient
Recipient’s address

Name of the sender
Sender’s contact details
Sender’s address

Subject: Request of repayment for the loan ref#[X]

Dear Mr. ABC,

I am writing this letter to ask you for the payment that I loaned you two years ago when you were in a serious financial crisis. At that time, I loaned you [X}$. I am very happy to see that you have worked through the tough time and now you seem to have recovered from the losses you endured. I feel that at this point, we should make some arrangements to work for the repayment of the loan. For enabling you to pay off the loan with convenience, I am ready to receive the payment in installments. However, if you can manage to pay the entire amount, I will be happy to accept it.

Please let me know how and when you can arrange repayment of the loan. I am looking forward to your reply.


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