Are you planning to close your loan but unable to visit the bank? The good news is that you can authorize someone to do it for you. In this article, we will provide you with the authorization letter format for loan closure that you can customize and use as per your requirement.
An authorization letter is a legal document that authorizes someone to act on your behalf. It is usually required when you cannot be physically present to carry out a task. When it comes to loan closure, an authorization letter can save you time and effort. It allows someone you trust to visit the bank and complete the necessary formalities on your behalf.
We have provided seven examples of authorization letter format for loan closure that you can use as a reference. You can edit them as per your requirements and use them as a template for creating your own letter.
Tips for Writing an Authorization Letter for Loan Closure
Here are a few tips that you can keep in mind while writing an authorization letter for loan closure:
1. Use a formal tone
Since an authorization letter is a legal document, it is important to maintain a formal tone throughout the letter. Address the recipient in a respectful manner and use appropriate language.
2. Provide all necessary details
Make sure to include all relevant details in the letter, such as your name, loan account number, and the name of the person you are authorizing to act on your behalf. This will ensure that there is no confusion or delay in the process.
3. Sign the letter
It is important to sign the letter yourself to indicate that you have authorized the recipient to act on your behalf. Your signature should be clear and legible.
4. Keep a copy of the letter
Make sure to keep a copy of the letter for your records. This will help you in case there are any issues in the future.
Examples of Authorization Letter Format for Loan Closure
Example 1: Loan Closure due to Prepayment
Dear Sir/Madam,
I, [Your Name], am writing this letter to authorize [Authorized Person’s Name] to visit [Bank Name] and carry out the necessary formalities for closing my loan account [Loan Account Number].
The reason for closing the account is that I will be prepaying the loan amount in full. [Authorized Person’s Name] has been authorized to collect all relevant documents, complete the necessary formalities and receive the loan account closure certificate on my behalf.
Please find the necessary documents enclosed with this letter.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
Enclosure:
- Loan Account Closure Form
- Loan Account Statement
- A copy of my ID proof
Example 2: Loan Closure due to Repayment
Dear Sir/Madam,
I, [Your Name], am writing this letter to authorize [Authorized Person’s Name] to visit [Bank Name] and carry out the necessary formalities for closing my loan account [Loan Account Number].
The reason for closing the account is that I have repaid the entire loan amount. [Authorized Person’s Name] has been authorized to collect all relevant documents, complete the necessary formalities and receive the loan account closure certificate on my behalf.
Please find the necessary documents enclosed with this letter.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
Enclosure:
- Loan Account Closure Form
- Loan Account Statement
- A copy of my ID proof
Example 3: Loan Closure due to Transfer to Another Bank
Dear Sir/Madam,
I, [Your Name], am writing this letter to authorize [Authorized Person’s Name] to visit [Bank Name] and carry out the necessary formalities for closing my loan account [Loan Account Number].
The reason for closing the account is that I have transferred my loan account to another bank. [Authorized Person’s Name] has been authorized to collect all relevant documents, complete the necessary formalities and receive the loan account closure certificate on my behalf.
Please find the necessary documents enclosed with this letter.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
Enclosure:
- Loan Account Closure Form
- Loan Account Statement
- A copy of my ID proof
Example 4: Loan Closure due to Settlement
Dear Sir/Madam,
I, [Your Name], am writing this letter to authorize [Authorized Person’s Name] to visit [Bank Name] and carry out the necessary formalities for closing my loan account [Loan Account Number].
The reason for closing the account is that I have settled the loan amount as per the bank’s offer. [Authorized Person’s Name] has been authorized to collect all relevant documents, complete the necessary formalities and receive the loan account closure certificate on my behalf.
Please find the necessary documents enclosed with this letter.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
Enclosure:
- Loan Account Closure Form
- Loan Account Statement
- A copy of my ID proof
Example 5: Loan Closure due to Change in Repayment Mode
Dear Sir/Madam,
I, [Your Name], am writing this letter to authorize [Authorized Person’s Name] to visit [Bank Name] and carry out the necessary formalities for closing my loan account [Loan Account Number].
The reason for closing the account is that I have changed the repayment mode from EMI to ECS. [Authorized Person’s Name] has been authorized to collect all relevant documents, complete the necessary formalities and receive the loan account closure certificate on my behalf.
Please find the necessary documents enclosed with this letter.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
Enclosure:
- Loan Account Closure Form
- Loan Account Statement
- A copy of my ID proof
Example 6: Loan Closure due to Maturity
Dear Sir/Madam,
I, [Your Name], am writing this letter to authorize [Authorized Person’s Name] to visit [Bank Name] and carry out the necessary formalities for closing my loan account [Loan Account Number].
The reason for closing the account is that the loan amount has matured. [Authorized Person’s Name] has been authorized to collect all relevant documents, complete the necessary formalities and receive the loan account closure certificate on my behalf.
Please find the necessary documents enclosed with this letter.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
Enclosure:
- Loan Account Closure Form
- Loan Account Statement
- A copy of my ID proof
Example 7: Loan Closure due to Death of Borrower
Dear Sir/Madam,
I, [Your Name], am writing this letter to authorize [Authorized Person’s Name] to visit [Bank Name] and carry out the necessary formalities for closing the loan account of [Name of Deceased Borrower]. The loan account number is [Loan Account Number].
The reason for closing the account is that the borrower has passed away. [Authorized Person’s Name] has been authorized to collect all relevant documents, complete the necessary formalities and receive the loan account closure certificate on behalf of the legal heirs.
Please find the necessary documents enclosed with this letter.
Thank you for your cooperation.
Yours sincerely,
[Your Name]
Enclosure:
- Death Certificate of Borrower
- Legal Heir Certificate
- A copy of ID proof of Legal Heir
Frequently Asked Questions
Q: Can I authorize someone to close my loan account?
Yes, you can authorize someone to close your loan account. You need to write an authorization letter stating the reason for closing the account and authorizing the person to act on your behalf.
Q: What documents do I need to submit along with the authorization letter?
You need to submit documents such as the loan account closure form, loan account statement, and a copy of your ID proof along with the authorization letter.
Q: Can I change the contents of the authorization letter?
Yes, you can customize the authorization letter as per your requirements. However, make sure to include all necessary details and maintain a formal tone throughout the letter.
Q: Do I need to sign the authorization letter?
Yes, it is important to sign the authorization letter to indicate that you have authorized the recipient to act on your behalf.
Q: Can I keep a copy of the authorization letter for my records?
Yes, it is advisable to keep a copy of the authorization letter for your records. This will help you in case there are any issues in the future.
Q: Is an authorization letter a legal document?
Yes, an authorization letter is a legal document that authorizes someone to act on your behalf. It is a legally binding document that has legal validity.
Conclusion
An authorization letter can save you time and effort when it comes to loan closure. By authorizing someone you trust to act on your behalf, you can avoid the hassle of visiting the bank yourself. We hope that the examples of authorization letter format for loan closure provided in this article will help you in writing your own letter.