EMI Restructuring Request Letter

To, The Branch Manager / Loan Recovery Department [bank_name], [branch_name] Date: [request_date] Subject: Request for restructuring of loan account no. [loan_account_number] Sir/Madam, 1. LOAN PARTICULARS Borrower : [borrower_name] Loan account no. : [loan_account_number] Type of loan : [loan_type] Outstanding amount : Rs. [outstanding_amount] Current EMI : Rs. [current_emi] 2. That I have been servicing the above loan and have endeavoured at all times to meet my obligations punctually. 3. REASON FOR THE PRESENT DIFFICULTY [reason_for_hardship] 4. That the above circumstances are genuine and are beyond my control, and have materially affected my capacity to service the loan at the existing EMI. 5. PROPOSED ARRANGEMENT [proposed_arrangement] 6. That I have no intention whatsoever of avoiding my liability. I remain committed to repaying the entire outstanding amount, and I am approaching the Bank proactively rather than allowing the account to fall into default. 7. That a restructuring on the lines proposed would enable me to resume regular servicing of the loan, and would be in the interests of both the Bank and myself, as against the alternative of default and recovery proceedings. 8. I request that the Bank kindly: (a) consider this request sympathetically and inform me of its decision in writing; (b) inform me of any documents or information required to process it; (c) inform me of the effect of the proposed restructuring on the total interest payable and on my credit record; and (d) refrain from initiating recovery action while this request is under consideration. 9. I am willing to attend the branch and to furnish any further particulars required. Thanking you, Yours faithfully, [borrower_name] Loan A/c: [loan_account_number] Contact: ______________________ DOCUMENTS TO ENCLOSE 1. Latest salary slips or income proof 2. Bank statements for the preceding six months 3. Documentary proof of the hardship — medical records, termination letter, or business records as applicable 4. Copy of the loan agreement and the latest statement of account NOTES - Approach the lender BEFORE defaulting. A restructuring request made while the account is standard is treated very differently from one made after the account has been classified as non-performing. - Ask specifically how the restructuring will be reported to the credit information companies. Restructuring is generally reflected in the credit record and can affect future borrowing, and it is better to know this in advance than to discover it later. - Keep a copy of this letter and obtain a written acknowledgment of its receipt.