Sample of a Loan Hardship Letter
New York, 2211
December 13, 2013,
Dear Mr. Alex,
It is with regret that I write to you to inform you of my financial hardships and consequent inability to pay back the installment on my $10,000 loan from Highbrow Bank.
As you know from my previous record, I owe the bank a total of $7,300, which are due in 8 months from now. However, due to a lay off at my company, I am without work and will not be able to meet the timeline for my monthly installments.
I am currently searching for new jobs, and am hopeful given my experience and resume. However, currently the market is saturated, and you would be aware how jobs are difficult to find.
Despite my best efforts, if I am unable to secure employment within the next month, I would need like to request a loan modification with more flexible terms to accommodate my circumstances.
Kindly get back to me and let me know my options. I am confident that you and the bank will be supportive through this rough patch.
Template of a Loan Hardship Letter
[Name of Recipient]
Dear [Name of Recipient],
As you are aware, I owe (you/your bank/bank name) (amount owed) which is due (due date for loan). However, due to uncontrollable circumstances, I am not in a position to pay my upcoming monthly installments for the loan.
(Reason for financial difficulty – loss of job/divorce etc) has rendered me unable to meet my expenses, and I would like to request a flexible loan plan to make easy installments.
In the meanwhile, I intend to (search for jobs etc) and am hopeful that it will work out soon.
If you look at my previous record, I have been making timely payments and have no outstanding installments. I hope I can expect some flexibility during this tough time.