Request Letter to the Bank for Restructuring of Term Loan

After obtaining the loan from a bank, it may not always be possible for the borrower to pay the loan timely as per the agreed schedule. This is generally because of a decline in the income of the borrower or any other reasons resulting in a delay in earning money and repaying the bank.

The borrower can approach the bank with a request to postpone the payment dates or change the terms of payment. Here are examples of application letters from the borrower to the bank manager for restructuring or rescheduling of loan.

TEMPLATE #1

(Application for rescheduling of loan.)

Date: _________

To

The Branch Manager

_________ Bank

_________ Branch

(Address)

Sub.: Request for restructuring of loan

Dear Sir/Madam,

I am having a savings account no. ________ in ______ bank. I was sanctioned the following loan by your esteemed bank in (Month, Year).

i) Type of loan: _________.

ii) Date of sanction: ________.

iii) Loan amount: _________.

iv) Tenure: Monthly for ___ months.

v) Repayment started from (Month, Year).

vi) Total number of installments paid: ___.

I kindly request you to arrange for rescheduling my loan installments by extension of repayment period of ___ months including a moratorium period of ___ months.

Reason for rescheduling: I am presently finding it difficult to repay the installments timely due to decline in my income because of loss of job/ delay in getting salary/ low business income.

I agree to abide by the amended terms and conditions of the loan and to execute all such documents as may be necessary for rescheduling of loan installments. I further agree to pay any fee as may be applicable for this purpose.

I would highly appreciate your kind consideration of my request favourably.

Thanking you,

Yours faithfully,

   (Signature)

(Name of the Loan Account-holder)

Mob. ____________

Address: _________________

TEMPLATE #2

(Application for restructuring of loan.)

Ref: __________

Date: _________

To

The Branch Manager

_________ Bank

_________ Branch

(Address)

Sub.: Application for restructuring of credit facilities

Dear Sir/Madam,

With reference to our current account no. ________ and loan account no. ___________ maintained with you, we have availed fund based limit of (Amount) and Non Fund based limits of (Amount).

Due to the following issues, we are facing difficulties in timely repayment of the credit facilities availed from your bank.

i) Postponement of major projects by our international clients i.e. ________ Limited and __________ Limited. The projects are valued at around (Amount). We are in discussion with our clients to commence the projects at the earliest.

ii) Delay in realisation of payments from some of the domestic clients. Decline in demand for some of our major products due to high competition. We are striving hard to revive our market share and increase our sales.

iii) The overall economic crisis in the country has also affected ______ industry severely. Hence, there is a decline in overall demand for our products. However, the market is reviving and we are hopeful the demand will increase as well.

Therefore, we hereby request your goodself for following amendments to the sanction terms of the credit facilities availed by us.

1. ___________.

2. _____________.

One or more of our promoters will also be infusing funds in the range of (Amount) to (Amount). Our Managing Director is willing to provide Personal Guarantee for the restructured credit facilities.

We have enclosed herewith the detailed financial statements for your kind perusal. The financial statements are CMA report, audited balance sheet, cash flow statement and DSCR. 

We have not made any reference to BIFR and CDR for restructuring or rehabilitation of our company. We are willing to execute all the necessary documents in favour of your Bank for the proposed restructuring of credit facilities. We further agree to pay any restructuring fee as may be required to be paid by us.

We would be grateful for your kind consideration of our proposed request.

Thanking you,

Yours faithfully,

For ________ Limited,

   (Signature)

(Name of the Officer)

(Designation)

Encl.: As above