How To Write a Letter of Interest For a Loan

Letter of Interest For Loan

The bank seems to be more likely to approve you a loan if you explain your company’s history and financial standing, as well as how you intend to use loan funds and repay them. 

In this article, we’ll go over how to write a loan request letter, go over its components, and go over a sample letter to help you write your own. 

What is a Letter of Interest for a Loan? 

Letter of Interest for Loan is a formal letter written by a client to his or her bank in which he/she conveys interest or request for a loan.  

This letter introduces you to the bank or other lending institution and clearly indicates your planned use for the loan funds, and the process of how you will pay back the loan. 

Anyone seeking a personal or business loan should draft a loan formal request and include it with their loan application. The lending institution’s first impression of you as a borrower is often formed by this letter. As a result, it should be professional, clear, and concise, and fit on one page.

Important Note: Write your letter using a professional format and in a professional tone as well. Banks and other financial institutions are concerned about your ability to repay the loan. In order to do so, include your qualifications as a borrower. 

Important Elements of a Loan Application Letter 

There are several elements that you should consider when writing a loan application letter. There are: 

  1. Header and Greeting 

When starting your loan application letter, you should start with a header and greeting. Include several lines in the header highlighting the necessary specific details of your loan request. When applying for a business loan, you should include the following information: 

  • Your name  
  • Business name 
  • Business address
  • Business phone number
  • Lender’s contact details
  • Lender’s name and title 
  • A subject line stating your desired loan amount 

Never forget to include a greeting right below the header to start your loan application  in a friendly tone. 

  1. Basic Details About Your Business 

You should begin your letter by clearly stating your request for a loan and the amount you wish to borrow. Thus, write a few sentences describing overall details about your business including:

  • The legal business name and any DBA used by your business
  • The business structure
  • The duration your business has been in operation
  • An overview of what your business does 
  • Number of employees
  • The business annual revenue and profits if applicable 

After explaining the basics of your business, you can move on to the next step, which is to explain why you require the business loan. You should also explain how you intend to repay the lender if the loan is approved.

  1. The Purpose of the Business Loan 

Each and every lender’s goal is to minimize risk to the greatest extent possible. As a result, they will carefully scrutinize your ability to repay the loan in full and on time before making a decision whether to approve or deny the business loan. 

As a result, you should have a clear plan for how you intend to use the business loan and why doing so is a wise investment. It is also necessary to demonstrate to the lender that you have considered the benefits that the loan will bring.

  1. Proof of Capability to Repay the Loan

These particulars are essential because they prove your company’s ability to repay the loan. Furthermore, you should include additional financial information about your company to demonstrate that it is a low-risk investment. 

If your business is likely, make sure to mention it, as this is usually considered sufficient proof of your ability to repay the loan. You should also include a business loan schedule if your company has any existing debt.

  1. Always give accurate information 

To ensure that both parties are happy with the terms of the deal, you should always provide correct and factual information, including an accurate credit history. The lack of honesty when requesting a long is considered bogus, and such actions will have implications. 

How to Write an Effective Letter of Interest for a Loan

A personal loan is approved primarily based on your credit score and good financial planning, whereas a business loan requires both a good credit score and receivables. furthermore, follow these steps to craft your own loan approval letter:

  1. Add basic information about the business: The first thing to do in drafting your persuasive letter is to begin with a proper header and greeting. 
  2. Mention the purpose of the loan: Explain briefly and clearly how you plan to use your loans funds. In this part, you must be persuasive when you are about to explain why this investment can be a beneficial one for your project or business. 

Note: Showing to the lender that you have considered the consequences of taking a new debt is important.

  1. Assure the lender of repayment: After indicating on how you will use the loan funds, focus on outlining how you plan to pay back the loan as well as the duration of the repayment, along with its interest.
    • State your reasons using persuasive evidence, thus, your lender is more likely to approve your loan request. 
  2. Closing the business request loan letter: It is essential to express that if your lender grants you a business loan, you will value it and use it wisely. To avoid having your application rejected, be professional and courteous.
    • Finally, request that the loan officer evaluate your application and assert your eagerness to speak with them as soon as possible, followed by your signature.

Samples & Templates

Sample #1: Business Loan Application Letter 

Joseph Laude 

GreenEver Street 

145 St. Anne, WC 

December 15, 2022

Leonardo Forshe

SBA Loan Administrator

Bank of American Business

Business Loan request for $50,000

Dear Mr. Forshe,

The aim of this letter is to request a business loan of $50,000 to upgrade my coffee shop, purchase government-mandated equipment and manage operational expenses. My business has shown a profit of over $100,000 every year for the past 3 years. 

My coffee shop has been successful due to being the only available coffee shop offering unique flavors. We are using organic but high-quality ingredients to prepare a variety of coffee flavors. 

I propose this loan to upgrade my whole coffee shop, and invest in new equipment like coffee machines and refrigerators. I will also expand the coffee area for customers to accommodate more people by changing the floor plan. 

I require a loan to improve my shop and keep with the demand. Furthermore, the loan of $50,000 will allow us to hire the right talent for our renovation. 

If you have questions, reach out to me at (431) 895-0462 or you can just email me at Thank you for your attention and consideration for my application. 


Joseph Laude  

Different Templates of Related Loan Application Letters 

Sample #2: Loan Application for House Renovation 

Applicant’s Name 

Bank Account Number 

Applicant’s Address

City, State, Zip Code


Name of Loan Officer

Name of Financial Institution or Bank

Address of Financial Bank or Institution 

City, State, Zip Code 

Loan Application for {XXXXXXX}

Dear (Loan Officer’s Name), 

I’ve had my savings and checking account in (Name of Bank) for the past (x) years, and my salary has been deposited in my account for the last six years. Honestly, I have never had any overdraft and there is always a good balance in my savings account. 

Based on my financial situation, I am applying for the loan amount of $(xx,xxx) to renovate my home. In fact, my roof should be replaced within the next two months before the winter season starts. I have enclosed the estimate from the contractor for the repair job. I also include photographs of the damage to my home from the leaks in my roof. In that way, I would like you to deduct the loan payments to repay the loan in the coming months. 

I have also inserted the completed forms required by the bank for this type of loan. You can reach me at (XXXXXXXXX) or email me at (email address) if you have any questions regarding my loan. As my situation is really urgent, I will highly appreciate it if you consider my request. 

Thank you for taking your time to read and consider this request of mine. gfhhcbgfhy6f97o 


Applicant’s Signature 

Applicant’s Printed Name 

Sample #3: Request Letter for Personal Loan  

Your Name

Your Address


Recipient Name

Recipient Title 

Financial Institution Name 

Financial Institution Address 

RE: Personal Loan Request for (xx,xxx) 

Dear Ma’am/Sir, 

The purpose of this letter is to request a personal loan in the amount of (xx,xxx). I plan to use the funds to pay for my sister’s heart surgery. She was diagnosed with congenital heart disease last year and has been on numerous medications since. Her doctor advised us that she should have surgery. 

Please see the attachment for my loan application. I’ve also included my most recent tax return, current bank statements, proof of income, and a list of my current assets. These financial documents, together with my credit score of (x), make me a high credit risk (financial institution name).

I would greatly appreciate the opportunity to discuss my personal loan application with you. I can be reached at (phone number) or (email address). 

Thank you for your time and your consideration of my loan application. 



Your Name 

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Key Takeaway 

  • Writing a Letter of Interest for Loan takes a bit of time, but it does not have to be difficult. 
  • You should include the amount you need for the loan request.
  • Describe the reason for the loan in detail.
  • You should also include the proof of capability to repay the loan. 
  • Apply professionalism when addressing the reader.