Re. Payment Settlement Letter
Dear [Name of the Recipient], I am writing to inform you that I have cleared all my debts and outstanding amounts [mention the date]. I have paid the amount as a settlement of full and final payment of all the outstanding amounts as debts hanging between us.
On [mention the date], I got a loan from your bank which I could not repay in the given time period. Due to the missed installments, the interest rate got higher and it became even tougher for me to repay the loan. However, after [mention the number of months you took to repay], I have paid the outstanding amount.
This letter of payment settlement should serve as a legal document whenever needed. Having paid the amount, I request you acknowledge the payment and release my withholding accounts. Also, I want you to return my blank check which was given as a security check for the sake of repayment of the debt.
Following is the detail of the amount and its repayment
Total Amount: $[X] USD
Interest: X% ($[X] USD)
First Installment: $[X] USD
Second Installment: USD [X]
Third Installment: Missed
Fourth Installment: Missed
Fifth Installment: Payment of complete amount $ [XXX] USD
Receipts of every payment have been attached to the letter. Please have a look at them for the date of submission and other details.
Having paid all the loans, I request you to release my documents that were withheld as a security for the repayment of the amount. I have applied for a foreign scholarship, therefore, I need my documents for verification by the concerned university.
Please let me know if I have to process the release of my documents and check in a specified way. Having paid the total amount with interest, I acknowledge that I have no debt to be paid and do not owe you any outstanding amount. Please verify the details on your end and return a copy of this letter to me after signing.
I am thankful to you for providing me with this loan. Also, I am grateful to your staff who remained very cooperative and guided me until I repaid the amount. Thank you.
Note: Kindly fill in the following space which belongs to you for the validation of this letter of payment settlement.
Name of the Debtor……………………..
Signature of the Debtor………………………
Re. Letter of Payment Settlement
This letter has been written to inform you about the payment settlement of the loan I received from your bank. This letter serves as a legal document whenever needed and keeps a position to be presented in a court of law as evidence or for the sake of assistance in further loans/payment matters.
I applied for a house loan from your bank on [mention the date]. I received a total amount of $[xxx] USD which was stipulated to be paid back in one year’s installment, i.e. to repay the loan, I was liable to pay $ [XXX] USD every month till one year. The total amount, interest, and installment plan were as below:
Total amount received: USD [X]
Total amount to be repaid: USD [X]
Monthly Installment: USD [X]
Plan: 12 Months
On [date], I have repaid the complete amount after paying my final installment of the installment plan. This is the 12th installment of the loan repayment which makes the amount completed within the given deadline.
According to the bank rules, whoever repays the amount by the given deadline receives a viable and excellent credit score.
I would be pleased to have my credit score verified document within a week as I need the document for my personal use. Moreover, having written this letter and settled the amount, I request you release me from all the liabilities and update your record accordingly. Please send me a clearance certificate that shows that I repaid the amount on time, received a good credit score, and remained professional and cooperative.
Also, please mention that the loan did not fault me in any way and I have repaid without being fined and missing any installment. The document should be complete and comprehensive from each aspect.
I will be thankful much to you if you release this document within a week so that I can use it as evidence for another loan matter. I am thankful to your team who remained very professional, efficient, friendly, and kind throughout this process. I will keep using your services in the future. Please feel free to ask any questions you have, using my email address or calling me on my phone number. Thank you.
[Phone Number] [Email Address] [Signature]
Enclosure: Please find the required documents and receipts of payment enclosed.