A payoff letter provides instructions on how to pay off a loan with a lump sum before the loan term ends. Learn how payoff letters work.This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. "I am writing to request a payoff letter for my loan, account number XXXXXXXX, with a requested payoff date of (date)." You will need to include all relevant information in the letter such as the loan amount, any outstanding payments, and the date of repayment. Note: Your loan bill will look a lot like your electric bill. What do I do to set up automatic payments? How do I rush a loan payment? Create a Loan Payoff Letter online and download it as a PDF or Word document.