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Debt Settlement Letter

When a defaulter does not pay the loan installments, usually after negotiations, a particular amount of the loan is agreed to be repaid by the debtor. After the debtor makes the necessary payments, he is issued a debt settlement letter by the concerned authorities.

  • The exact amount paid by the debtor should be mentioned in the letter.
  • The letter should be short, precise and clear.

Debt Settlement Letter Template

Use our free Debt Settlement 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.

 

To,

__________ (customer’s name)

__________ (customer’s address)

__________

__________

From:

______________ (Your name)

______________ (Your address)

__________________

Date __________ (date of writing letter)

Dear Mr. /Ms__________ (name of the concerned person),

This letter is to inform you that you are no longer a defaulter and the bank has accepted the payment you made towards your loan. The initial loan amount was_________ (mention amount) and after negotiations with you and our legal consultant, it is decided as__________(mention new amount).

Our company understands your concerns over non repayment of the loan. We appreciate your cooperation with our authorities in this regard. The cheque you have issued in the name of our organization towards the loan repayment will be cleared in a couple of days and after that we shall send you a final settlement letter from our legal officer.

We would like to have a fruitful association with you in future as well. We have tried our best to keep your credit history clean so that you will not encounter any problems in case you want to go another loan from any financial institution.

We once again appreciate your efforts and patience in settling this loan and contributing for the mutual benefit.

Yours Sincerely,

 

_________ (Your name)

 

Download Template (Doc and PDF)

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Debt Settlement Letter Sample, Email and Example/Format

Sample

To

Raju Kulkarni,

34, bank Street,

Hebbal,

Bangalore

Dear Mr.Kulkarni,

This letter is to inform you that the loan you owed to the bank is cleared after negotiations. You have made a payment of 90 percent of the total loan amount which is Rs 4,45, 450. We understood your genuine concerns over the non repayment of the loan amount and discussed with our legal officer. We spoke to you several times and gave you enough time to repay the suggested amount.

We are happy to receive payment from your side within the stipulated time. You are free from anymore repayments towards your loan. This letter can be considered as a clearance letter and you will receive a letter by our legal consultant as well.

We seek fruitful association in future

Thanking you,

 

Yours Sincerely,

 

Praveen Mistri

 

Email Format

When a defaulter does not pay the loan installments, usually after negotiations, a particular amount of the loan is agreed to be repaid by the debtor. After the debtor makes the necessary payments, he is issued a debt settlement letter by the concerned authorities.

To

Raju Kulkarni,

34, bank Street,

Hebbal,

Bangalore

Dear Mr.Kulkarni,

This letter is to inform you that the loan you owed to the bank is cleared after negotiations. You have made a payment of 90 percent of the total loan amount which is Rs 4,45, 450. We understood your genuine concerns over the non repayment of the loan amount and discussed with our legal officer. We spoke to you several times and gave you enough time to repay the suggested amount.

We are happy to receive payment from your side within the stipulated time. You are free from anymore repayments towards your loan. This letter can be considered as a clearance letter and you will receive a letter by our legal consultant as well.

We seek fruitful association in future

Thanking you,

 

Yours Sincerely,

 

Praveen Mistri

 

Debt Settlement Letter Generator

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