Loan Repayment Demand Letter Template

[Your Name or Business Name]
[Your Title, if applicable]
[Street Address]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]

[Date]

[Borrower Name or Business Name]
[Borrower Contact Person, if applicable]
[Street Address]
[City, State/Province, ZIP/Postal Code, Country]

Subject: Demand for Loan Repayment – [Loan / Promissory Note Reference No.: ______]

1. Introduction and Loan Reference

Dear [Mr./Ms./Mx. Last Name] / [To Whom It May Concern],

This letter serves as a formal demand for repayment of amounts now overdue under the loan made by [Your Name or Business Name] to [Borrower Name] pursuant to:

• Loan Agreement / Promissory Note Title: [Title]

• Date of Loan Agreement / Note: [Date]

• Loan / Account Reference Number: [Reference No.]

2. Loan Details and Amounts Due

According to our records, the loan was originally made on the following terms:

• Original Principal Amount: [Currency and Amount]

• Interest Rate: [Rate % per year or “0% – interest-free”]

• Repayment Terms: [e.g., “Monthly installments of [Amount] due on the [Day] of each month,” or “Lump-sum repayment due on [Maturity Date]”]

As of the date of this letter, the following amounts are past due:

• Overdue principal: [Currency and Amount]

• Accrued interest on overdue amounts (if applicable): [Currency and Amount]

• Late fees or charges under the loan agreement (if applicable): [Currency and Amount]

Total amount now due: [Currency and Total Amount]

If interest and/or late fees continue to accrue under the loan agreement, this total may increase after [Date].

3. Payment Deadline

You are hereby required to pay the Total Amount Now Due in full no later than:

Payment Deadline: [Date – for example, 7, 10, or 14 days from the date of this letter]

If payment has already been made in full, please provide written confirmation, including the payment date, amount, and method, so that we can reconcile our records.

4. Payment Instructions

Payment may be made using the following details:

Bank Transfer
Account Name: [Account Name]
Bank Name: [Bank Name]
Bank Address: [Bank Address]
Account Number / IBAN: [Account Number / IBAN]
SWIFT / BIC: [SWIFT/BIC]
Payment Reference: [“Loan Repayment –” + Loan / Reference No.]

Other Accepted Methods (if any)
[For example: “Check payable to [Name], mailed to [Address],” “Online payment via [Platform] using reference [Reference].”]

5. Opportunity to Clarify or Dispute

If you believe that:

• The amount stated above is incorrect;

• You have already made payment; or

• There is any other valid reason why this loan is not in default,

you must notify us in writing on or before the Payment Deadline.

Your written response should include:

• Your full name or business name;

• The loan or reference number;

• A brief explanation of your position; and

• Copies of any supporting documents (for example, bank confirmations, receipts, or written amendments).

Please send your response to:

Email: [Billing or Contact Email Address]
Mailing Address: [Mailing Address for Correspondence]

6. Consequences of Non-Payment

If we do not receive full payment of the Total Amount Now Due, or a written response reasonably addressing this matter, by the Payment Deadline stated above, we may proceed without further notice to take one or more of the following actions, as permitted under the loan agreement and applicable law:

• Treat the loan as in default and, if allowed by the loan terms, accelerate the entire remaining balance so that all amounts become immediately due and payable;

• Enforce any collateral or security interests given in connection with the loan;

• Refer the debt to a collection agency;

• Commence legal proceedings to recover the outstanding balance, plus any additional interest, fees, and costs permitted by law;

• Exercise any other rights and remedies available under the loan agreement and applicable law.

If collection or legal action becomes necessary, you may be responsible for additional interest, costs, and fees, to the extent permitted by law.

7. Reservation of Rights

Nothing in this letter shall be interpreted as a waiver or limitation of any rights or remedies available to [Your Name or Business Name] under the loan agreement or applicable law. All such rights and remedies are expressly reserved.

8. Closing

Our preference is to resolve this matter quickly and amicably. This letter is intended to give you a final opportunity to bring your loan account current before more formal steps are taken.

If you wish to discuss this demand, clarify any details, or propose a short-term repayment arrangement, please contact us immediately at [Phone Number] or [Email Address].

Sincerely,

[Your Signature, if printed]
[Your Printed Name]
[Your Title, if applicable]
[Your Business Name, if applicable]