When drafting a request letter to the bank for a loan clearance certificate, clarity and politeness are essential. Clearly state your name, address, and loan account details. Specify the details of the loan, including the loan amount, reason for the loan, and payment history. Politely request the issuance of the loan clearance certificate and express gratitude for their assistance.

Table of Contents:

Sample Letter Regarding Loan Clearance Certificate

The Manager,
__________ (Bank),
__________ (Address)

Date: __/__/____ (Date)

Subject: Loan clearance certificate of account __________ (account details)

Respected Sir/Madam,

My name is ___________ (Name) and I am a resident of __________ (Location). I hold a loan account in your bank i.e. ____________ (Bank) having account number.

With utmost respect, I am writing this to you in order to inform you that I took a loan for _________ (Amount) for _________ (Home Loan/ Vehicle Loan – Reason Of Loan). This loan was taken on __/__/____ (Date). It is to be stated that tenor of my loan was ________ (Months/ Years) and a I paid a sum amount of __________ (Amount already paid) making ________ (Balance amount) as balance amount. But, due to ___________ (Availability of money/ EMI Not suitable – Mention) I made a payment of above-stated balance amount.

Therefore, I request you to kindly issue a loan clearance certificate regarding the loan mentioned above. I shall be highly served.

Thanking you,
Yours Truly/Faithfully,
____________ (Signature)
____________ (Name),
____________ (Contact Number)

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  • Start Typing: Enter your letter content in the "Letter Input" textarea.
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  • Q: What is a loan clearance certificate?
    • A: A loan clearance certificate is a document issued by the bank confirming that the borrower has repaid the loan in full and there are no outstanding dues.
  • Q: Why do I need a loan clearance certificate?
    • A: A loan clearance certificate serves as proof that you have fully repaid your loan, which may be required for various purposes such as property transactions or financial audits.
  • Q: Can I request a loan clearance certificate online?
    • A: Some banks may offer online facilities for requesting and receiving loan clearance certificates, while others may require the request to be made in person at the bank branch.
  • Q: Is there a fee for obtaining a loan clearance certificate?
    • A: Some banks may charge a nominal fee for issuing a loan clearance certificate. It's advisable to inquire about any applicable fees beforehand.
  • Q: How long does it take to receive a loan clearance certificate from the bank?
    • A: The processing time for a loan clearance certificate may vary depending on the bank's procedures and workload. It's recommended to check with the bank regarding the expected timeline.

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