5 Best Loan Application Letter Format Examples in Nigeria 2022 Code
Nigeria Loan Application Letter – Do you want to apply for a loan in Nigeria? Whether it’s a business loan or a personal loan, knowing how to write a proper loan application letter can help you get the loan you’re currently looking for. Do you know the right format for writing a loan application in Nigeria? If not, continue reading this article to see the best loan format for all loan types in Nigeria.Nigeria Information Guide
A well-written application letter may be just what you need to get the loan you’ve been waiting for. Most business owners often apply for a business loan to perhaps expand their business or to cover a new business idea they want to venture into. However, getting the loan is not as easy as it sometimes seems. Although several financial institutions offer loans to business owners, they generally require you to write a letter of application before obtaining the loan. This is why you need to learn the proper format for writing a loan application.
Read also : How to Print a NYSC Appeal Letter
What is a loan request letter?
A loan request letter is a formally written request letter to your employer, financial institution, or business to express your intent to acquire a business or personal loan from them.
The loan application letter highlights your personal accomplishments, skills, and life as an individual. It helps you get the attention of the employer or financial institution responsible for reviewing loan applications.
For your loan application to be approved, it must be interesting enough for the manager and it must highlight your main qualifications that make you suitable for the type of loan you are applying for.
Also Read: How to Write a NYSC Relocation Letter with Samples
How to write a loan request letter
To write a good loan application letter, follow the key points below:
1. Address the letter to the correct authority
One of the important key notes in writing a loan application letter is to address it to the authority. If your loan application letter is addressed to the wrong authority, your loan application will not be processed. Always confirm the correct authority to whom you should address the loan application before addressing your letter. For example: HR, your manager or loan officer.
2. Indicate your reasons for applying for the loan
When applying for a loan, whether for business or personal use, it is important that you explain in detail how the money will be spent. When you apply for a loan with a vague explanation of how the money should be spent, your loan application may not be approved. The lender needs to know why you need the money to determine if it’s reasonable or not.
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3. Be specific about the amount you want
Always be specific about the amount you are asking for when applying for a loan. It is believed that if the reason you are applying for a loan is legitimate, you should know the exact amount of loan you need to solve your problem. Also, it will help the lender know if you have the ability to borrow for the amount you are requesting.
4. Showcase your positive attributes
When applying for a loan, be sure to describe all of your good attributes in the application letter to show the lender that you are trustworthy. Describe your positive work history and what you can offer to ensure the loan will be repaid on time.
5. Describe how you intend to repay the loan
It is an important part of the loan application letter. Have you describe your intention to repay the loan if it is granted to you. This will let the lender know that you are indeed worthy of the loan you are applying for.
6. Make sure the information you provided is correct and honest
Lending money is a sensitive issue, which is why lenders only lend money to people who are honest and factual about the situation. Additionally, it is important that you maintain a good credit history to enjoy a smooth loan application.
Also Read: How to Get a NYSC Rejection Letter
Loan Application Letter (5 Best Formats)
The loan application letter is divided into six paragraphs, with each paragraph addressing a major topic like loan amount, description of your business, loan purpose, target market, repayment plan, etc. See the best loan application letter format below:
Business Loan Application Letter Format
Let’s see how to write a business loan. Take a case study of a businessman who owns a furniture business and applies for a 30 million naira loan to expand his business.
Mr Victor Nnaji
Chief executive officer
Nnaji’s furniture houses
Mr JohnsonMichaelLEG Result
Application for a loan to develop my business
Dear Mr Johnson,
I am applying for a business loan of 30 million naira to help me expand my furniture business especially my warehouses. Over the past 2 years, my business has experienced a significant increase in sales and revenue, which has given me reason to opt for an expansion.
I have accumulated huge experience in the furniture industry and I could be considered as an expert and also a leading marketer in this industry.LEG Form
I started Nnaji’s Furniture Homes in 1992 and since then the business has been making consistent profits till date. Although there have been ups and downs in the business, which is normal for all businesses, the business has flourished a lot under my leadership.
The furniture market depends on the housing market of the economy and we have many customers who have been satisfied with our products and have given good reviews on our products.
In recent years, the housing market has improved significantly and projected growth over the next 10 years exceeds pre-recession figures. So, at Nnaji’s Furniture, we do our best to meet the growing demand for furniture as well as keep up to date with the latest upcoming designs, so that we can always be ahead of the market.
I used profitable marketing strategies which resulted in an average of 4000 new orders each month from many private owners across the country.
So far, I have invested about 20 million naira in the business, and my collateral consists of business assets with a fair market value of 45 million naira, while my personal assets are valued at 25 million naira.Recruitment
I disclose my business plan which details the reasons for applying for the loan. You can contact me at +2341647745362 if you have any questions.
Mr Victor Nnaji
Chief executive officer5 Best Loan Application Letter Format Examples in Nigeria
Nnaji’s furniture houses.
Also Read: How to Get a NYSC Appeal Letter
personal loan application letter format
If your loan request is for personal use, use the format below. The case study here is of a customer service agent applying for a loan to pay for his children’s school fees.
Customer Service Agent
Administrative teamWAEC Result
Mr. Bruce Banner
BCV Co. Ltd.
Application for a loan to pay children’s school fees
Dear Mr Bruce,How to Check MTN Bonus Balance
I humbly request a personal loan of N200,000 to enable me to pay school fees for my children. I was supposed to have paid the fee before now, but due to some unforeseen events that happened which were quite urgent, I was unable to pay the fee.
This unforeseen event resulted in the reduction of the money set aside for my children’s school fees and I was hoping to obtain a loan from you to enable me to pay their school fees.
It is no news that I have been with the company for over five years now and throughout my time in the company I have shown extreme loyalty and dedication to the organization and so I think you might consider my loan application and deem me worthy of getting the loan.
You may use your discretion to determine or suggest a repayment plan for me as an employee of this organization.
Thanks in advance as I hope to hear from you soon.
Brian Dennis.How to connect NIN to Glo SIM
Customer Service Agent
Check and confirm: How much is the dollar in naira today Pounds in naira today
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