When writing a request letter for reducing the interest rate on a loan, be clear and polite. Introduce yourself and provide necessary loan details. Clearly request the interest rate reduction and explain the reason behind your request. Make sure to thank the bank for considering your request. Avoid unclear language and include all essential information to help the bank process your request promptly.

Sample Letter: Request Letter for Interest Rate Reduction on Loan

The Branch Manager,
___________ (Name of the Bank),
___________ (Address of the Bank),

Date: __/__/____ (Date)

Subject: Request for Interest Rate Reduction on Loan

Respected Sir/Madam,

Most humbly, this is to inform you that my name is _______________ (name) and I hold a ___________ (personal/home/car/education/business/other) loan account with your bank. My loan account number is _____________ (mention loan account number).

I am writing this letter to request a reduction in the interest rate on my loan due to ________________ (financial hardship/improved credit score/market rate changes/loyalty to the bank/long-term customer/other). Lowering the interest rate would greatly assist me in managing my repayments more effectively and ensure timely payments.

I have been a loyal customer of your bank for ___________ (mention duration) and have consistently made my payments on time. I am hopeful that my request will be considered favorably. If you need any further information or documentation, please feel free to contact me at __________ (contact details).

Thank you for your kind consideration and time. I shall be highly obliged.

___________ (Name)
___________ (Account Number)
___________ (Loan Type)
___________ (Contact Number)
___________ (Email Address)