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Loan Repayment Demand Letter Template
Send a clear, professional demand letter to recover overdue loan payments or accelerate the full balance if allowed.
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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According to our records, the loan was originally made on the following terms: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]
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Learn more about
Loan Repayment Demand Letter Template
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
LOAN REPAYMENT DEMAND LETTER TEMPLATE FAQ
What is a loan repayment demand letter?
A loan repayment demand letter is a formal written notice sent by a lender to a borrower when a loan payment (or the full loan) is overdue. It refers to the loan agreement or promissory note, lists the amounts past due, sets a final date to pay, and warns that further action may be taken if payment is not received.
When should I use this loan repayment demand letter?
Use this letter after the borrower has missed one or more payments or failed to repay the loan by the agreed maturity date, and informal reminders have not worked. It can be used for personal loans (family, friends, private lenders) or business loans before turning the matter over to collections or starting legal proceedings.
What should a loan repayment demand letter include?
A strong letter should identify both lender and borrower, reference the loan agreement or promissory note, state the original loan amount, list missed payments or unpaid balance, show the total now due, set a clear payment deadline, provide payment instructions, and explain what may happen if payment is not made (for example, acceleration of the full balance, collection, or legal action).
Can I use this template for both personal and business loans?
Yes. You can adapt this template for personal loans, shareholder or director loans, intercompany loans, or business-to-business lending. Just adjust the descriptions, dates, and tone to fit your situation and the type of relationship.
Does sending a loan repayment demand letter start a lawsuit?
No. Sending the letter does not itself file a court claim. It is usually a final warning before more formal action. However, it can later be used as evidence that you clearly requested payment and gave the borrower a reasonable opportunity to resolve the default voluntarily.
Can AI Lawyer help me customize this loan repayment demand letter?
Yes. AI Lawyer can help you adapt this template by inserting your loan details, overdue amounts, deadlines, and appropriate consequences, while keeping the language professional and clear. You still provide the true figures and documents and remain responsible for any decision to escalate to collections or legal action.
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