Sample Letter To Bank Requesting Extension Of Time For Loan Payment Due To Covid 19

• Category: Letters - Loans and Lending - Payment Reductions
• State: Multi-State
• City: Chicago
• Control #: US-0277LR
• Format: Word; Rich Text

Description

Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount Dear [Creditor's Name], I hope this letter finds you well. I am writing to kindly request a temporary reduction of the loan payment amount for my loan with your institution. As a resident of Chicago, Illinois, I have been facing unforeseen financial difficulties due to the ongoing COVID-19 pandemic, causing a significant decrease in my income. Chicago, Illinois, often referred to as the "Windy City," is a bustling metropolis renowned for its iconic skyline, vibrant cultural scene, and world-class museums. Known as the birthplace of the skyscraper, Chicago boasts architectural marvels such as the Willis Tower and the John Hancock Center. The city is a melting pot of diverse communities, offering a multitude of dining options, shopping districts, and entertainment venues. However, the current economic climate has presented unprecedented challenges for many Chicago residents, myself included. The implementation of strict lockdown measures and subsequent business closures have resulted in a sharp decline in economic activity and significant job losses. As a result, I find myself in a position where I am unable to meet my loan payment obligations in full. I understand the importance of fulfilling my financial obligations and maintaining a good credit history. However, I currently have no means to make the full loan payment amount, and I fear that defaulting on the loan may have severe implications for my financial well-being in the long term. Considering these exceptional circumstances, I kindly request your understanding and support in granting me a temporary reduction of the loan payment amount for a period of [specific duration, for example, three months]. This temporary relief would provide me the necessary breathing room to stabilize my financial situation and regain stability in these challenging times. I assure you that as soon as my financial situation improves, I will resume making the agreed-upon payments promptly. I would be grateful if we could work together to find a mutually beneficial solution during this difficult period. Furthermore, I am open to discussing various options, such as deferring a portion of the payment or extending the loan term to reduce the monthly installment. It is crucial to mention that the reduction requested is temporary and limited to the immediate financial difficulties I am facing due to the pandemic. Once the situation improves and my income stabilizes, I am committed to resuming regular payments as agreed upon in the loan agreement. I have attached relevant supporting documents, such as proof of income loss, that exemplify the severity of my financial situation. I hope this additional information can assist you in understanding my current circumstances better. Thank you for your understanding and consideration of my request. I believe that together, we can find a solution that allows me to meet my financial obligations without compromising my long-standing commitment to repayment. I genuinely appreciate your attention to this matter and look forward to your prompt response. Sincerely, [Your Name] [Your Address]

Dear [Creditor's Name], I hope this letter finds you well. I am writing to kindly request a temporary reduction of the loan payment amount for my loan with your institution. As a resident of Chicago, Illinois, I have been facing unforeseen financial difficulties due to the ongoing COVID-19 pandemic, causing a significant decrease in my income. Chicago, Illinois, often referred to as the "Windy City," is a bustling metropolis renowned for its iconic skyline, vibrant cultural scene, and world-class museums. Known as the birthplace of the skyscraper, Chicago boasts architectural marvels such as the Willis Tower and the John Hancock Center. The city is a melting pot of diverse communities, offering a multitude of dining options, shopping districts, and entertainment venues. However, the current economic climate has presented unprecedented challenges for many Chicago residents, myself included. The implementation of strict lockdown measures and subsequent business closures have resulted in a sharp decline in economic activity and significant job losses. As a result, I find myself in a position where I am unable to meet my loan payment obligations in full. I understand the importance of fulfilling my financial obligations and maintaining a good credit history. However, I currently have no means to make the full loan payment amount, and I fear that defaulting on the loan may have severe implications for my financial well-being in the long term. Considering these exceptional circumstances, I kindly request your understanding and support in granting me a temporary reduction of the loan payment amount for a period of [specific duration, for example, three months]. This temporary relief would provide me the necessary breathing room to stabilize my financial situation and regain stability in these challenging times. I assure you that as soon as my financial situation improves, I will resume making the agreed-upon payments promptly. I would be grateful if we could work together to find a mutually beneficial solution during this difficult period. Furthermore, I am open to discussing various options, such as deferring a portion of the payment or extending the loan term to reduce the monthly installment. It is crucial to mention that the reduction requested is temporary and limited to the immediate financial difficulties I am facing due to the pandemic. Once the situation improves and my income stabilizes, I am committed to resuming regular payments as agreed upon in the loan agreement. I have attached relevant supporting documents, such as proof of income loss, that exemplify the severity of my financial situation. I hope this additional information can assist you in understanding my current circumstances better. Thank you for your understanding and consideration of my request. I believe that together, we can find a solution that allows me to meet my financial obligations without compromising my long-standing commitment to repayment. I genuinely appreciate your attention to this matter and look forward to your prompt response. Sincerely, [Your Name] [Your Address]