Hardship Letter to Loan Provider for Relaxation in Payment

Letter -1

I hope you are well and doing great. I am writing in response to our last meeting about the payment of debt. First of all, thank you very much for providing me with the loan. As per our settlement and agreement I owe you $[X] which I was bound to pay by the end of October 20xx. However, with a heavy heart, I am writing to inform you that I am facing a severe financial crisis and I will not be able to pay you by the end of October.

My business is under the cloud of bankruptcy as I do not have an amount to pay the debts. The condition of the economy is bad and continuous lockdowns and shutter down strikes have worsened the scenario. The company is not generating enough revenue to pay the salaries of the employees. How can I think of making any profit in such a situation where we are barely meeting the needs of the company?  I am not sure when would the condition be stable. Hence, I am writing to you to ask for some time to pay your debt.

I request you to please provide me with two months’ relaxation in the payment. I will repay the entire debt on 30th December 20xx. If you agree, kindly send me a letter of acknowledgment or call me at my number [x]. I will be waiting for your response. I hope you will consider my situation and will not disappoint me in this need of the hour. I will be highly obliged if you will grant me this one little favor.

I look forward to hearing from you soon. Thanking in anticipation.

Kind Regards,

Hardship Letter to Loan Provider for Relaxation in Payment

File: Word (.docx) Size: 12 KB

Letter -2

With the reference to our last telephonic conversation about the payment of the debt, I am writing to inform you that my financial condition is not stable. I am out of a job right now. My company sent me a letter of furlough. Obviously, with no salary in hand, I will not be able to repay any of the debt. My leave of absence is of three months. I hope everything will be fine afterward.

I live on rent with my family. Also, I am the only breadwinner of my family and I also have a bedridden sister to take care of. I have some savings in my account from which I am sending you the partial amount of repayment. Kindly consider this little amount and grant me an extension of three months for the repayment of debt. I will be highly indebted with gratitude if you will lend me this huge favor. I realize that I owe you $[x] which were to be paid in three equal monthly installments but right now due to this monetary crisis I am unable to do so.

When I applied for the loan this furlough thing was out of the question. Hence, I signed all the agreements and provided you with all the required documentation but now I am in trouble. The pandemic of Covid-19 is at its peak. Most of the companies are giving furlough letters. Some of the companies are also downsizing and terminating the employees. Fortunately, my name was on the list of furlough, at least I have the hope that my job is intact and I will rejoin after three months.

If you agree we can make new terms and conditions of the loan agreement and sign the document again. Otherwise, kindly give me an extension of three months and I will pay the debt in three equal monthly installments in the next three months. I have attached a copy of my furlough letter and receipt of partial payment with this letter. Please acknowledge this letter by writing back to me or else you can call me on my number [x]. I look forward to hearing something positive from your side. Thanking in anticipation.

Warm Regards,  

Hardship Letter to Loan Provider for Relaxation in Payment

File: Word (.docx) Size: 12 KB