Home Loan Cancellation Letter

Often people have to take loans to build a home for themselves due to the unavailability of sufficient funds. In this case, there are many services that offer easy terms to take home loans. These loans are usually given at an interest rate and the lender has to pay the original amount plus the interest in easy installments which are decided at the time of granting the loan.

Home loans are very common these days but if someone comes up with sufficient funds or some other source of income that would enable them to buy the house without drawing a loan, they can cancel the loan they had requested originally. In such situations, they would write a letter to the lender and tell them that they no longer require the home loan, and they should communicate if there are any cancellation charges.

Letters of financial nature are formal letters, and they should be written very carefully. Giving out all the details without any ambiguity because they are very serious documents and in case of an issue, they can be presented in the court as evidence for or against the lender.

So, they should be written after thorough fact-checking. Also, the tone should be formal yet polite. Remember that you may have to draw a loan later in life and if you are impolite or rude now you will have difficulty taking a loan later. You should keep your relations with the bank civil and end the loan arrangement on a good note.

Save -1:

I’m writing this letter to cancel the home loan application I had given earlier. I had requested you for a home loan on (date) as I required an amount of (amount) to complete my home renovation. This loan had to be paid back by (date)and it was decided that I would return the (amount) back in (number) installations of (amount) each.

But now I have come into possession of some funds, and I feel that I will be able to complete the renovations without drawing a loan, so I would like to cancel my application for the home loan. I am sorry for any inconvenience this might have caused you and I’m willing to pay cancellation fees If there are any.

I would like to thank the bank officials who made this transaction very smooth and made it very convenient for us to draw the loan. If I ever need to take a loan again, I would be approaching your bank due to the convenience and the efficiency with which the entire thing was handled. Also, I have recommended your excellent services to friends and family. Keep up the good work!!

Looking forward to your understanding and consideration.

Save -2:

I had drawn a loan from your bank on (date) of the amount (number).  It was decided that I would repay this loan within a period of (number) in installations of (amount). My home loan application had gone for final approval. But the circumstances have changed a bit and I have come in possession of some amount. Basically, I have inherited some amount from a relative who passed away recently, and I feel that I would be able to complete my home renovations with this amount.

I want to cancel my loan application. I’m sorry for any inconvenience this might cause on your end. But trust me it was not intentional, and I only came to know of the money a little while back, and as soon as it’s confirmed I’m writing to you.

I am going to return the amount that I have drawn today on (date) and I am willing to pay cancellation charges according to the bank policy. I would also like to take this opportunity to thank you for the quick processing and efficient handling of my loan request.

I was really impressed by the interest taken by your agent and the help that I was extended throughout the process. I would recommend your Bank for drawing loans if anyone in my friends and family needs one. keep up the good work.