Financial institutions are usually the ones that offer personal loans to individuals. Typically, these personal loans expose financial institutions to a higher risk since they are unsecured loans. This means that the financial institution cannot go after the borrower’s assets in case he cannot pay for the personal loan.

The only remedy that these financial institutions have is to request payment of a personal loan. This request is usually in the form of a letter to be sent to the borrower. A request for payment must still be polite despite the borrower’s unpaid accounts. This can help a financial institution establish a good reputation, which can even lead to the immediate payment of the personal loan.

Here is a sample letter of request for payment of a personal loan. This might give you the idea on what to include in your own letter.

Sample Letter

Golden Finance Company
908 North Stamford, Fairfield County
Connecticut 09602, USA
Golden.finance@qmail.com

June 11, 2010

Glenda Miles
675 South Harpeth, Nashville
Tennessee, USA
37215

Dear Ms. Miles:

Our company would like to request for the payment of the personal loan you have made 8 months ago, on October 2, 2009. The terms of this personal loan, in which you and our company have agreed upon, include monthly payment of an interest of 5% and the payment of principal last April 2, 2010. You have only complied with this agreement for three months that includes the payment of 5% interest rate compounded monthly.

Please be informed that the remaining three months, from January to March, are not yet paid. In addition to that, you are also now required to pay for the principal. We have granted your request to give you two months grace period before you pay for the three months’ interest and the principal. However, we still have not heard from you since then.

The company has already given you two months grace period. We can still modify the terms for this loan to help you pay for it. You are still in our best interests. We want to hear from you soon regarding this personal loan. The company really appreciates an immediate reply to this letter. Thank you.

Sincerely,

Mary Gold
President