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Collection Letter

This type of letter is generally written by the creditors to their debtors who have taken loan from them for their personal use or for a new business. The amount is being credited once both the parties sign a mutual agreement in which a date is mention by which the debtor has to make the payment of the loan on installment basis. If the debtor fails to make the payment on time, then the creditors remind them by writing a collection letter to them for the same.

  • First and foremost it is vital to give some extra time to the debtor to arrange funds for the payment in this letter.
  • Tone of the letter should be firm and formal.
  • The letter should clearly mention the due date for the payment and also the amount.
  • You must clearly mention the repercussions which the debtor may face in terms of nonpayment and also provide a last date for the payment.
  • Once you are through writing the letter, please recheck the same for spelling mistakes or punctuation errors.

Collection Letter Template

Use our free Collection 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)




Dear Mr. ________________(Name of the person),

With reference to your loan for amount ___________ (Amount) taken from our Bank is due for its first installment. The last date to make the payment is _____________ (Date). As per to the signed contract by both the parties, if the payment is not made in time, we are supposed to take a legal action against you.

We would appreciate if you could advice us on the mode of payment. We hope to have a long term association with you.

Yours sincerely’




Download Template (Doc and PDF)

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Collection Letter Sample, Email and Example/Format



Mr. Abraham George
123, Hudson lane

Date (Date on which letter is written)


Joseph Mathew
ABC Finance Pvt. Ltd.

Sub: Collection letter for payment reminder

Dear Mr. George,

With reference to the agreement signed by you against the loan of amount $50000, I would like to inform you that your payment for the first installment is due on 15th December. I would appreciate if you could do the needful on time. I believe that you must be aware of the consequences if you failed to make the payment on time. I wish that you will abide by the terms of the agreement and will settle the loan on time.

In case you wish the payment to be collected from your place, do give us a call and our representative will do the needful.

Hope to have a sound business relationship with you,


Yours sincerely’


Joseph Mathew


Email Format

Businesses would not run if everybody had money for everything that s/he desired to have. It is only because of money being available with someone that there are people who fulfill their dreams. A Creditor may be a person or an institution or a bank that offers the facility of giving money as loan to be paid back with interest. A Debtor on the contrary is a person or an organization that takes the money for its business or any other requirement.

Dear Ms/Mr ___________

This is with reference to the loan that you have taken from our institution vide docket number _____________ dated ____________.

We would like to inform you that your first installment is due on _________ (date) as per the loan agreement. This is a payment collection reminder for the same.

Please let us know how and by when will the payment be made to us. Alternatively we can also send our representative to collect the payment from you at a time convenient to you.

Just to reiterate that if the payments are not received before the due dates, we will have to take legal action.

We hope to have a pleasurable business relationship with you.

Best regards,


(Name of signing authority)


Collection Letter Generator

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