Letter of Undertaking for Loan

Undertaking letter for a loan is written assurance from one party to another for making the full and final payment of the loan as decided previously. The loan mentioned can be a car loan, home loan, or education loan, etc. Undertaking letters for loans are usually written to a Bank.

THINGS TO REMEMBER, WHILE WRITING A LETTER OF UNDERTAKING FOR LOAN:

  • As these are formal letters, Keep the tone polite and formal.
  • The business letter format should be followed.
  • One can express gratitude for giving enough time for paying the loan.
  • One must include the details like name, duration of the loan payment, total and outstanding payment, etc.
  • Details mentioned should be cross-checked for errors.
  • Proofread the letter for spelling mistakes and grammatical errors.

OBJECTIVE:

The primary objective of undertaking a letter for a loan is to give a written assurance for paying back the outstanding amount of the loan in a timely manner as an undertaking is a legal document. It also helps in showing one’s good intentions about making the payment in the given duration.

THE ABOVE SYNTAX CAN BE USED FOR MANY DIFFERENT UNDERTAKING LETTERS FOR LOANS. SOME OF THE EXAMPLES ARE GIVEN BELOW:

  • letter of undertaking for loan repayment
  • letter of undertaking for the loan from the employer
  • letter of undertaking for a car loan
  • letter of undertaking for a bank loan
  • letter of undertaking for a personal loan
  • letter of undertaking for the payment of loan

Letter of Undertaking for Loan




Undertaking of Loan – Undertaking Letter Format for Loan

To, ___________ (Manager) ___________ (Company Name /Bank Name) ___________ (Address) Date: __________ Subject: Undertaking of Loan Dear Sir/Madam, I/We hereby undertake that I/We have taken loan from ____________ (Company/ Bank details) for _______ (purpose of loan) and will not pay any unsecured loans taken from my /our relatives /family / friends during the tenure of …