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Settlement Agreement Letter

The settlement agreement letter can be any sort of mutual agreement that targets the settlement of due amount which has to be paid from one party to the other. The important aspects of such a letter include the amount, time, interest and other similar aspects.

  • The letter should specify the case
  • The letter should also specify how the settlement can be tackled
  • The letter should specify the amount
  • The letter should be clear and simple
  • The letter should express the conditionalities of both parties

Settlement Agreement Letter Template

Use our free Settlement Agreement Letter to help you get started. Simply download the .doc or pdf file and customize it. If you need additional help or more examples check out some of the sample letters below.






Date: _____ (Date on Which Letter is Written)






Subject – _______________________(Mention the purpose)

Respected _______(Name)

This letter is in the form of a settlement agreement between the company and the client with regard to the taking back his gold pledged in our company____(mention the name of company) in the form of loan two years back and has not paid any amount in till the day under interest. Hence it becomes onus on him to pay the interest and the principle amount which comes to ____(amount). If the client has any sort of doubt regarding the interest or anything therewith, he is free to contact the office before making the payment and taking back his jewelry.

Hope you will get back to me very early

Thanking you.


Name and signature

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Settlement Agreement Letter Sample, Email and Example/Format


Respected Sir/Madam,

This is the settlement letter between the gold loan company Tribhovan jewelers and the Mr. Jethalal to make a settlement of the gold placed in the company for cash. The gold was made pledge 2 years back and the client has not been able to pay the interests of any sort till the day. The amount he took from the bank was Rs 1,0000 and the interest and the compound interest now amounts nearly 1,6000. And as per the agreement of settlement the client is ready to pay the amount and take back the jewels.

The company is levying on the client both the simple and compound interest as per the mutual agreement reached between us and the client. In fact all these provisions were made clear before he pledged his gold in our bank. And we request the party concerned to read this settlement letter and in case if he feel that there is any sort of doubt and needs further, clarification he can contact us for assistance

Yours sincerely,

Thanking you,

Yours sincerely,


Email Format

6th Sept’ 2010.

Subject: Request to consent on settlement agreement letter.

Dear Mr. Gavde,

Sir myself Tarun Shetty, the undersigned client of your esteemed Cholamandalam Finance since last ten years or so with your agent Mr. Arvind Purohit would like, rather request you in relation to the above subject to grant a settlement agreement for favoring me looking over my past dealings & the current crisis in which I am very sure to escape in the very near future.

Sir, having recently corresponded to your Powai branch office regarding the same matter, I was replied to send a request letter to do so, after looking over the past performances, pay back capacity & also in positive & good terms.

Lastly once again kindly requesting you to consent my settlement proposal at the earliest to relieve me from current financial crisis; further I am obliged to reimburse the outstanding liability along with the interest amount as per the said agreement.

Thanking You;

Yours Truly.

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