Letter to Bank requesting Time Extension for Loan Payment

There may come a situation when you are unable to make payment of the loan installment amount or the EMI amount or any other payment due to your bank. In that case, you may approach the bank to allow you some more time for making the payment.

This extension is sought in advance to avoid any kind of late fees and interest that may get additionally charged to your account.

If the bank does not have any specific format of submitting the time extension request then you may use the following letter format to write to the bank.

TEMPLATE

Date: ...................

From

(Name of the Account holder)

(Address)

(Contact No.)

To

The Branch Manager

(Name of the Bank)

(Name of the Branch)

(Address)

Sub.: Extension of time for making installment payment against education loan

Ref: (1) Savings account number: ................................

        (2) Loan account number: .....................................

Dear Sir/Madam,

I am maintaining a savings account in your bank at .......... branch, bearing account number ......................... I had applied for an education loan for (purpose) for Rs. .........../- (Rupees ................... Only) and it was approved in the month of (month), (year). For your ready reference, the loan account number is .................... According to the terms of the loan, an amount of Rs. .........../- (Rupees .................. Only) is getting deducted from my savings account on the ....th day of every month.

However, I do not have enough balance for honoring the payment for this month i.e. ............ There is a delay in realizing some payments from my clients, hence, there is a delay in depositing the amounts in my savings account resulting in low balance at this stage. I am expecting the payment within the next few days. There will be sufficient balance eventually to honor the installment.

I understand a late payment fee of Rs. ............ is charged in case of such delay along with interest at the rate of ....% p.a. on the payment amount. Therefore, I kindly request you to please allow me (number) more days to make the payment for this month only. I will make the due payment by the evening of (Date). The late fees and interest amount will further unnecessarily increase the burden on me in a monetarily tight situation like this.

Hence, I further request your goodself to be kind enough to not to levy any late fees and interest during these (number) days extension period. In case, there is any further delay from my side in making payment, then necessary fees/interest may be deducted and I will honor the same without seeking any further extension of time.

Please kindly note that I am a long standing customer of your bank and I have always been honoring the due payments in time except on only a couple of occasions. I hope you will consider my previous track records while evaluating my request. I value my relationship with the bank and wish to continue this in the mutually beneficial interests.

Thanking you in advance in anticipation for your kind consideration on my request!

Yours faithfully,

    (Signature)

(Name of the Account holder)