Whenever you want to close your loan some times you need to write a request letter to the bank or finance company to close your loan. It applies to all kinds of loans like personal clowns, vehicle loans and home loans, etc.
After closing your loan you need to get a no due certificate, which acts as proof that you have paid all the balance loan amount.
- Required documents to close loan
- Perosonal loan closure letter format
- Bike/car loan closure letter format
- Home loan closure letter format
Required Documents to Close Loan
- Loan A/c number.
- Loan approval letter
- Customer KYC like Aadhar & PAN.
Here you can find sample loan closure letter formats which you can also download in Word format.
Sample personal Loan Closure Letter Format
The Bank Manager
Sub: Personal loan closure application.
I am writing this letter to request you close my personal loan bearing account no. _______ because I have paid (all the EMIs / paid full loan amount / loan tenure has completed / other reason).
Please find all the required documents enclosed with this letter such as the loan sanction letter, my KYC documents like Aadhar & PAN copies.
I permit you to deduct the loan closure charges if applicable.
Bike/Car Loan Closure Letter Format
The Branch Manager,
Sub: Vehicle loan closure letter format.
With due respect, I request you to close my vehicle loan under a/c no _________, which I have taken to purchase my bike/car of registration no. ______ .
I want to close the loan because I have cleared all the EMIs/ paid full amount/ loan tenure has completed/ other reasons. Kindly let me know the further steps to close my vehicle loan.
Home Loan Closure Letter Format
Sub: Home loan closure application.
I, [your name] writing this request letter to close my home loan bearing loan account number [321XXXX1234].
I have paid all my pending home loan amount and please find the copies of bill receipts enclosed with this letter.
Therefore kindly close my home loan and issue me the no due certificate and other required documents.
How to close my personal loan
- Visit your bank’s branch.
- Fill the loan closure application
- Pay any pending loan amount/charges.
- Submit your KYC & loan closure letter.
- Sign the required documents.
- Collect the acknowledgment.
How do I know my loan was closed?
You will receive a loan closure SMS on your mobile and the bank send the loan closing documents to your address.
Should I need to pay any loan closure charges?
There is no need to pay any charges in normal cases, except If you have any pending EMIs (or) if you wish to foreclose the loan. These charges vary from one bank to another bank.