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.You will need to include all relevant information in the letter such as the loan amount, any outstanding payments, and the date of repayment. Create a Loan Payoff Letter online and download it as a PDF or Word document. Customize and print a blank Loan Payoff Letter for free. This is an example of a payoff letter used in a syndicated loan transaction. This payoff letter (including the defined terms such as Lenders,. Online filing and searching available through SOSDirect. For information or to subscribe, call (512) 475-2703. Download and print all application documents.