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WTO / Applications / 20 Best Loan Application Letter Samples (Guide and Format)

20 Best Loan Application Letter Samples (Guide and Format)

An application letter for a loan is a formal letter written to a financial institution by a borrower requesting a loan, payable in a specified amount of time.

The letter helps lenders get acquainted with the borrowers better to determine if they qualify for the loan based on the information provided or not. Writing it is important because it helps convince lending institutions to lend you a specific amount of money. It is their first impression of you, which is why it should be written with great care. In this article, we will guide you on how to write it, the type of information you should provide, and some pointers that will help you highlight your strengths in the letter.

Brief Overview- What to Include

There are no strict rules for writing an application for a loan. It depends on the borrower to decide what information to include, but the following items are typically included in it:

• Contact information
• Explanation of why money is needed
•  Amount of money being requested
• Purpose of the money
• Details about employment history
• Personal references
• Company information
•  A list of supporting documents

When to Write?

Two main situations warrant this letter. The first instance is when you are seeking a loan from a conventional bank lender. Conventional bank lenders are financial institutions that do not offer loans but make them available to the general public. Conventional banks usually require applicants to submit this application to prove their creditworthiness.

The second situation that warrants its use is when applying for an SBA-guaranteed loan. An SBA-guaranteed loan involves the federal government; applicants must undergo additional screening before they are approved for funding. Applicants can improve their chances of getting an SBA guarantee by submitting a personalized, formal loan application with supporting documentation.

There are situations when you do not necessarily need to write this letter, such as when you are borrowing from friends and family, from an alternative lender who may only require your bank statements or pay slips, when seeking equipment financing, and lastly when you are requesting a business line of credit.

Free Templates

Pre-writing Considerations

Applying for a loan involves being prepared for anything, so it is important to have the things you need before writing. Do some research on your lender, and write down notes about why they are suitable for you and what you would like them to know about your project. Write those questions that may arise during the process of applying for your loan. Check your credit score and know your rights as a borrower when you apply for a loan.

After you have done all of the above, review everything and ensure that what you’ve written is easy to understand by someone who has not read your notes or audited your finances. When applying for a loan in a major financial institution or applying for an SBA loan, you will almost always be required to write an application letter for a loan. It is important to note that unless it is supported by a sound credit situation or proper financial planning, it may not be enough to help you secure the loan. 

Fortunately, there are two things that you can do to increase your loan limit and increase your chances of getting a loan. You can first check your business and personal credit scores from accredited credit reporting bureaus such as TransUnion, Equifax, and Experian and take the necessary steps to improve them.

The second thing that you can do is to prepare your business financial statements, i.e., your profit and loss statement , cash-flow statement , balance statement, etc., for the past six months and attach them to your letter. These documents are essential when applying for a loan as they help the financial institution assess your creditworthiness and increase your chances of securing a loan.

How to Write a Loan Application?

Writing it can seem daunting, but it can be a simple process if you follow the proper format and include all the required information.

The following is a summary of the information you must provide in your letter:

The header is an integral part of the standard business letter format . It should include:

• Your name and contact information : Make sure to include your full name, address, and contact information. This should include a mailing address with a zip code, a business email address, and your cell phone number where you can be reached.
• The date : Include the month, day, and year of the letter. You must ensure that you write the date on which the letter was created.
• The name of the recipient : This will be a bank representative in many cases, but it can also be an SBA representative or another financial institution to whom the borrower is addressing the letter.

Subject line

When writing it, make sure to include a clear subject line that will help the recipient understand the purpose of the letter. Make sure to include whether the loan is for personal or professional use in the subject line.

“Loan Request Application Letter.”

Address your letter correctly. If you do not know who will be reading it, write “ To Whom It May Concern . ” If you are trying to get a business loan, address it to the company’s representative issuing the loan. If you are applying for a personal loan , address it to the bank or whoever provides it.

Introduction

It should begin with a brief statement of the goal and amount you are requesting. It should also state your qualifications for the loan and any other pertinent information that can be used for your evaluation as a borrower such as your financial status , your work history, the length of time you have been in business, etc.

The body is the main part of the letter, and it should contain all the information the recipient will need to decide whether to grant the loan or deny the request.

Some of the information that must be covered in the body includes:

• Basic business information : If you are writing it, the first item to include in the body of the letter is details about your business. This information will help the lender understand who you are and will serve as the foundation for your loan application. Some of the information that you should cover in this section includes your business’s registered name, business type (i.e., partnership , sole proprietorship, LLC , etc.), nature of your business (i.e., what you do), main services and products, your business model, the number of employees that you have, and your annual generated revenue.
• The purpose of the loan : You must explain why you need the loan and the purpose for which it is being requested. This can be to purchase or expand a business, for a personal reason, or to pay some debt.
• Present yourself as being trustworthy : To get a loan, you need to establish trust with the lender. This can be achieved by explaining what you do for a living, providing some identity documents, and demonstrating why you deserve to be trusted.
• Explain how you intend to pay back : Explain briefly how you plan on repaying the loan. This should include a timeline for repayment and be supported by evidence such as a business plan, personal financial statement, or credit report .
• Proof of financial solvency : In some cases, you will be asked to provide evidence that the funds requested are not your only source of income. Documents like bank statements or tax returns can help you prove that you have other sources of funding, which will increase the likelihood that your request will be granted.

In the conclusion, you must thank the lender for considering your request. Briefly mention all the attached financial documents. Remember that each lender has their own set of loan application requirements and may request different information or documentation from borrowers, so make sure to double-check the specific instructions provided by the lender.

Once you have finished writing the letter, be sure to sign it at the bottom. You may include phrases such as:

“Respectfully yours” or “Sincerely yours”.

Place your name and contact information directly above the signature line.

SBA Loan Application Letter Template

[Your Name]

[Your Address]

[City, State ZIP Code]

[Your Phone Number]

[Your Email Address]

[Loan Officer’s Name]

[Bank Name]

[Bank Address]

Dear [Loan Officer’s Name],

I am writing to apply for a Small Business Administration (SBA) loan to help fund my [business name]. I am excited to have the opportunity to present my business plan to you and explain why I believe my business is a great candidate for an SBA loan.

[Provide an introduction to your business, including its history, products or services offered, and unique selling proposition. Explain why you started the business and what sets it apart from competitors. This should be no more than two paragraphs.]

I am seeking an SBA loan in the amount of [$ amount], which will be used to [briefly explain how the funds will be used]. My business has experienced steady growth in recent years, but we need additional capital to take advantage of new opportunities and expand our reach.

[Provide a detailed explanation of how you plan to use the funds, including any expected return on investment. Be specific about the amount of money you need, how long you will need it for, and how it will be used.]

As part of my loan application, I have included the following documents for your review:

• Business plan
• Financial statements for the past three years
• Tax returns for the past three years
• Cash flow projections
• Articles of incorporation
• Personal financial statements for all owners

A list of collateral that will be used to secure the loan, if applicable

[Provide a comprehensive list of all the documents you have included with your application. Make sure you have included everything the bank has asked for, and any additional documents that may be relevant.]

I am confident in the future success of my business and believe that an SBA loan is the right choice for us. I understand that the loan application process can be lengthy, and I am committed to providing any additional information or documentation that may be required to support my application.

Thank you for considering my loan application. I look forward to hearing from you soon.

Loan Application Letter Sample

Make your small business loan application more polished with our simple sample letters. They’re crafted to help you convey your needs professionally and improve the impact of your request. 

Sample letter 1

Dear Sir/Madam,

I am writing to apply for a Small Business Administration loan to support my growing business, GreenTech Innovations. Established in 2018, we specialize in eco-friendly technology solutions. Our recent market analysis indicates significant growth potential in sustainable energy products.

To capitalize on this opportunity, we require additional funding for research and development, marketing, and expanding our team. An SBA loan would enable us to invest in these critical areas, fostering innovation and job creation. Our business plan, attached to this application, outlines our strategy for a sustainable and profitable future.

GreenTech Innovations has a strong financial track record, with consistent revenue growth over the past three years. We have maintained a healthy cash flow and have a solid plan for loan repayment, as detailed in our financial projections. Our commitment to financial responsibility and strategic growth makes us an ideal candidate for an SBA loan.

Thank you for considering our application. We are committed to contributing positively to the economy and the environment. Your support would be instrumental in helping us achieve our goals.

Jordan Smith

Owner, GreenTech Innovations

Sample letter 2

Dear Business Loan Officer,

I am reaching out to request a business loan for my company, Bella’s Boutique, a unique clothing and accessories store located in downtown Springfield. Since our opening in 2019, we have become a beloved part of the local community, known for our exclusive designs and personalized customer service.

This loan is sought to enhance our inventory, upgrade our in-store technology, and expand our online presence. These improvements are essential for keeping pace with the evolving retail landscape and meeting the growing demands of our customers. Our detailed business plan is attached for your review.

Financially, Bella’s Boutique has demonstrated resilience and growth, even amid challenging economic times. Our sales figures have shown a steady increase, and we have a clear plan for managing the loan and ensuring its repayment. We believe these factors make us a strong candidate for a loan.

Your consideration of our loan application is greatly appreciated. This funding will not only help Bella’s Boutique thrive but will also support the local economy by providing more employment opportunities and enhanced retail experiences.

Thank you for your time and consideration.

Warm regards,

Isabella Martinez

Founder, Bella’s Boutique

The effectiveness of these sample letters as a guide for someone seeking to write a loan application lies in several key aspects. Firstly, they demonstrate the importance of a clear and concise introduction, where the purpose of the letter is immediately stated, ensuring the reader understands the intent from the outset. This is crucial in any formal business communication. Both samples skillfully describe the nature and background of the respective businesses, providing just enough detail to give the reader a sense of the company’s identity and market position without overwhelming them with unnecessary information. This balance is vital in maintaining the reader’s interest and establishing the context of the request.

Moreover, the letters excel in explicitly stating the purpose of the loan, which is a critical component of any loan application. They outline how the funds will be utilized to grow and improve the business, demonstrating not only a clear vision but also a strategic approach to business development. This helps in building a sense of trust and reliability with the lender. Furthermore, the inclusion of financial health indicators, such as past revenue growth, cash flow management, and a repayment plan, adds to this trust by showing financial responsibility and foresight.

The writers also incorporate attachments like business plans and financial projections, which provide additional depth and substantiation to their claims. This shows thorough preparation and professionalism, which are highly regarded in the business world. Finally, the tone of the letters is appropriately formal yet approachable, and they conclude with a note of gratitude, reflecting good business etiquette. This combination of clarity, conciseness, relevance, and professionalism makes these letters exemplary guides for anyone looking to draft an effective and persuasive business loan application.

Tips for Writing

Following are some tips for writing this letter:

Be specific

Be sure to include specific details in it to keep the reader’s attention. Ensure that you include information about the purpose of the loan, how much money you need, and the reason why you are a good candidate for a loan.

Brevity is essential when writing this letter. Stick to the essential points and avoid extraneous details. This will help to ensure that your letter is easy to read and that the reader is not distracted by irrelevant information.

Address the appropriate person

Ensure that you address your letter to the most relevant party for your particular situation.

Consider contacting the bank to find out to whom it should be addressed. This is how you can be sure that it will get to the right person.

Use a proper format and layout

As with all letters, you should use clear, concise paragraphs and avoid unnecessary jargon. Make sure to use the appropriate format for formal letter writing and use a professional, polished layout.

Include business financial statements

The financial statements for your company must be attached to your letter if you are a business owner. In this way, the reader will better understand your overall financial situation and help demonstrate that you are a good candidate for a loan.

The following are some of the purposes for which you may request a small business administration loan: to start a new business, to buy new equipment or inventory for your company, to upgrade or expand an existing business, to cover unanticipated expenditures, to pay off high-interest debt, to fund marketing campaigns, to move your office to a new location, to buy insurance for your business, to purchase stock, to buy out shareholders, and for any other lawful reason authorized by the lender.

Key Takeaways

Here are the key takeaways from this article:

• When writing an application for a loan, be sure to provide specific details about the purpose of the loan, how much money you need, and why you are a good candidate for a loan.
• Use the standard business letter format and use clear, concise paragraphs.
• Brevity is vital when writing such a document, so mention only the essential points and avoid extraneous details.
• Address your letter to the most relevant party for your situation, and be sure to include your company’s financial statements.

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Application for a Personal Loan (with Samples & PDFs)

I have listed sample templates to help you craft an effective and professional application for a personal loan.

Also, I would like to point out that you can also download a PDF containing all the samples at the end of this post.

Request for Personal Loan Application Approval

First, find the sample template for application for a personal loan below.

Subject: Application for Personal Loan

Respected Sir/Madam,

I, [Your Name], am a resident of [Your Residential Address] and have been a valued customer of [Bank’s Name] for the past [Number of years/months you have an account with the bank].

I am humbly writing this letter to apply for a personal loan of INR [Loan Amount] due to some urgent personal needs. I understand that the bank offers personal loans at an interest rate of [Interest Rate] which suits my budget and repayment capacity.

I am currently employed at [Your Company’s Name] for the past [Number of years/months you have been working] and my monthly income is INR [Your Monthly Income]. I am confident that I can repay the loan amount in [Number of Years/Months to Repay Loan] without any difficulty, through equal monthly installments.

I assure you that I will comply with all the terms and conditions set by the bank for this loan. I am enclosing the necessary documents required for the loan application process, including proof of income, proof of residence, and other relevant papers.

I kindly request you to process my loan application at the earliest. Please let me know if any further information or documentation is required from my side. I would be glad to provide the same.

Thank you for considering my application. Looking forward to a positive response.

Below I have listed 5 different sample applications for “application for a personal loan” that you will certainly find useful for specific scenarios:

Application for a Personal Loan for Medical Emergencies

I, [Your Full Name], a long-standing account holder in your esteemed bank with the account number [Your Account Number], am writing this letter to request a personal loan due to a medical emergency.

In light of this, I humbly request your good office to grant me a personal loan of [Required Amount in INR] to cover the medical expenses. I assure you that I will adhere to the repayment terms and conditions as dictated by the bank. I am ready to provide any further information or documents that might support my loan application.

I hope for your understanding and positive response at the earliest, considering the urgency of the situation. I understand that your bank values its customers and their needs, and I am confident that you will provide me with the necessary financial assistance in this critical moment.

Yours faithfully, [Your Full Name] [Your Contact Number] [Your Email ID] [Your Residential Address]

Date: [Current Date] Place: [Your City]

Application for a Personal Loan to Finance Home Renovations

To, The Branch Manager, [Bank Name], [Bank Address],

I, [Your Full Name], am a customer of your reputed bank holding a savings account with the number [Your Account Number]. I am writing this letter to apply for a personal loan of INR [Loan Amount] for the purpose of renovating my home.

The house where my family and I reside is in need of significant repairs and improvements to ensure its livability and safety. The renovations include repairing the roof, painting, changing the plumbing system, and upgrading the electrical wiring. These renovations are of utmost importance to ensure the well-being and comfort of my family.

I have been an account holder of [Bank Name] for the last [Number of Years] years and have maintained a good banking record. My monthly income is INR [Your Monthly Income], and I believe I am capable of repaying the loan amount in easy monthly installments over a period of [Loan Tenure].

Attached with this letter are the necessary documents including proof of income, property documents, and a detailed estimation of the renovation costs. I kindly request you to consider my application and approve my loan request at the earliest possible.

Thank you for your understanding and consideration in this matter. I look forward to your positive response.

Application for a Personal Loan for Higher Education Expenses

To, The Branch Manager, [Bank Name], [Bank Address], [City], [State], [Pin Code]

Dear Sir/Madam,

I, [Your Full Name], a resident of [Your Address], am writing this letter to apply for a personal loan to cover my higher education expenses. I have been accepted into [Name of the University], which is a prestigious institution recognized worldwide, for pursuing my [Type of Degree] in [Field of Study].

The total cost of my education, including tuition fees, living expenses, and other related costs is approximately INR [Total Cost]. I have managed to secure INR [Your Savings] through my savings and financial aid. However, I require an additional amount of INR [Required Loan Amount] to fully cover my expenses for the duration of my study, which is [Duration of Course] years.

I am confident that this investment in my education will result in a bright future, enabling me to secure a well-paying job and repay the loan in due time. I have always been a responsible individual and I assure you that I will adhere to the repayment schedule diligently.

Attached herewith are the necessary documents including, Proof of Admission, Cost Breakdown, Residential Proof, and Identification Proof for your kind perusal.

Thanking you in anticipation of your positive response.

Application for a Personal Loan to Consolidate Debt

To, The Branch Manager, [Bank Name], [Branch Address], [City], [Postal Code]

I, [Applicant’s Full Name], a resident of [Applicant’s Address], am writing this letter to formally apply for a personal loan. I am a loyal customer of your bank for the past [number of years] years and hold a savings account with the account number [Account Number].

My purpose for this loan is to consolidate my existing debts. I currently have multiple loans which include a home loan, car loan, and some credit card debts, the total of which amounts to INR [Total Debt Amount]. The interest rates on these loans are quite high, and it has become a financial burden to manage these multiple debts simultaneously.

Therefore, I humbly request a personal loan of INR [Requested Loan Amount], which I plan to use to pay off all these outstanding debts. By doing this, I will only have one loan with a single interest rate to manage, thus easing my financial strain.

I am a [Your Occupation] at [Your Company’s Name] and my monthly income is INR [Your Monthly Income]. I am confident in my ability to repay the loan in a timely manner and am willing to provide any further financial information or documents that may be required to process this loan application.

I hope you will consider my application favourably and help me streamline my financial situation. I am looking forward to a positive response from you at your earliest convenience.

Yours sincerely,

Application for a Personal Loan for a Vacation Trip

To, The Branch Manager, [Name of the Bank], [Branch Name and Address],

I, [Your Full Name], have been a loyal customer of [Bank’s Name] for the past [number of years] years. I hold a savings account in your esteemed bank, account number [Account Number]. I am writing this letter to formally request a personal loan of INR [loan amount] for the purpose of financing a vacation trip.

I have a stable job with [Your Company Name], where I have been working for the past [Number of years/months] years/months. I am confident in my ability to repay the loan amount along with the interest in a timely manner. I am ready to comply with any terms and conditions put forth by the bank in sanctioning this loan.

I kindly request you to process this application at the earliest and provide the necessary details regarding the loan approval process. I am ready to provide any further details or documents required for the same.

[Your Full Name] [Your Contact Number] [Your Email Address]

How to Write Application for a Personal Loan

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Applications , Request Letters

Loan Request Letter (Format & Sample Applications)

A Loan Request Letter is a letter written by a loan applicant and addressed to a lending institution, generally sent as a part of the loan application process. A loan request letter introduces you to the bank or other lending institution, clearly describes your planned use for the loan funds, and describes how you will pay back the loan. It is the part cover letter and part resume because you demonstrate the qualities that make you a good candidate for a loan by outlining your qualifications.

Anyone who applies for personal or business loan should write a loan request letter and enclose it with their loan application. This letter is often the lending institution’s first impression of you as a borrower. Therefore, it should be professional, clear, and concise, easily fitting into one page.

Important: Write using a professional format and in a professional tone. Banks and other lending organizations are concerned about your ability to repay the loan. Pointing out your financial problems works against you – instead, point out your qualifications as a borrower. Remember, this letter is your first contact with the lender and uses it to showcase your company as a reliable borrower.

What a Lender Needs to Know

In order to consider your loan request, a lender needs some information about you or your company. Although this information is included in detail in your loan application, your letter should formally introduce your request. Here is what you should include in your loan request letter:

• Your name and/or your company name, including any DBA
• Your contact information
• Your business entity structure
• Brief description of your business
• Your number of employees
• How long you have been in operation
• Annual revenue and profits if your company is profitable
• Amount of loan requested
• How the funds will be spent
• Your financial security
• A list of enclosures

The bank or lending institution is primarily concerned with how the money they are lending will be spent and repaid. Be sure to include information on these two critical points in your letter.

In addition to the loan application, you should enclose applicable financial documents, such as tax returns. Send your business plan, cash flow statement, and profit and loss (P&L) statement.

Loan Request Letter (Format)

{your name}

{your company’s name}

{your address}

{lender name}

{lender title}

{lender institution name}

{lender address}

RE: {(Small business) or (Personal)} loan request for {amount}

Dear {lender name}:

The purpose of this letter is to request a {(small business) or (personal)} loan in the amount of {amount} for the purpose of {purpose}. {Use this space to discuss your small business. Include name, business structure, and industry.}

{Business name} began operation on {date}, with {number} employees. As a {business structure type}, {business name} has consistently grown and now employs {number} individuals. {Use this space to discuss your marketing presence.}

{Use this area to briefly discuss your most recent year’s revenue and profit, if profitable. Discuss revenue and profit consistently over time when possible.}

{Use this area to describe the reason for the loan request.} {Use this area to explain that the opportunity is immediately available, but you lack sufficient immediate funds.}

Attached, please find our business plan, our annual profit and loss statement, and our most recent cash flow statement for your review. These financial documents and our strong credit score of {number} combine to make us a safe credit risk for {lending institution name}.

I would greatly appreciate the opportunity to speak with you about a {(small business) or (personal)} loan. I can be reached at {phone number} or by email at {email address}.

Thank you for your time and your consideration of my request.

{your signature}

Sample Loan Application Letter

Matthew Dobney

Entirely Electronics

3048 West First Street

Spavinah, OK 89776

EntirelyElectronics.com

June 22, 2048

Mr. James Burrows

SBA Loan Administrator

Bank of American Businesses

New York, NY 65782

RE: Small business loan request for $20,000

Dear Mr. Burrows:

The purpose of this letter is to request a small business loan in the amount of $20,000 for the purpose of enlarging our warehouse.

Entirely Electronics began operation on June 1, 2020, with two employees. As a partnership, Entirely, Electronics has consistently grown and now has 20 full-time employees. Entirely Electronics has been quite successful in obtaining a proportionate share of the online electronic retail community. Our online presence has grown from our website alone to Facebook, Instagram, and Yelp. Our marketing techniques consistently drive new customers to Entirely Electronics, and we boast a high customer retention rate.

Last year, Entirely, Electronics saw a growth of 25% in revenue over the previous year. Our profit margin remained stable at 18% throughout the year.

Our growth has created a significant shortage of available warehouse space, and market research shows we will continue to grow. As we look to the future, we understand we must create more warehouse space to continue growing. Although our revenue is consistent, we do not have the immediate large amount needed to complete the necessary expansions to our warehouse.

Attached, please find our business plan, our annual profit and loss statement, and our most recent cash flow statement for your review. These financial documents and our strong credit score of 790 combine to make us a safe credit risk for Bank of American Businesses.

I would greatly appreciate the opportunity to speak with you about a small business loan. I can be reached at 983-744-6597 or by email at [email protected] .

Loan Request Letter Template

Writing a loan request letter takes a bit of time and research, but does not have to be difficult. Using the above format, you can easily request a loan for your small business or a personal need. The sample letter demonstrates how to make a great first impression on a lending institution.

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How to Write a Bank Loan Application Letter: Example and Writing Tips

Last updated on January 02, 2023 - © Free-Sample-Letter.com

What is Bank Loan Application?

A bank loan application is a request made to a financial institution , such as a bank, to borrow a specific amount of money. The purpose of the loan can vary, such as to fund a business venture, pay for education expenses, or make a large purchase.

In order to apply for a loan, an individual or business must complete an application that includes personal and financial information, as well as details about the purpose of the loan and the requested amount . The lender will use this information to evaluate the borrower's creditworthiness and determine whether to approve the loan and at what terms.

Step-by-Step Guide: Crafting a Successful Loan Request Letter

Here are some tips on how to write a bank loan application letter:

• Identify the purpose of the loan and the amount you’re requesting . Be specific and clearly state your financial needs. For example: "I am writing to request a loan of $10,000 to cover the costs of my daughter's tuition at XYZ University." or "I am writing to request a loan of $50,000 to fund the expansion of my small business, XYZ Company."
• Explain your current financial situation and provide evidence of your ability to repay the loan. This may include income statements, tax returns, and other financial documents. For example: "I have been self-employed as the owner of XYZ Company for the past 5 years and have consistently earned a net profit of $30,000 per year / I have been employed as a software engineer at ABC Company for the past 8 years and have a stable income of $75,000 per year. Attached, you will find my tax returns and financial statements as evidence of my ability to repay the loan."
• Describe the specific use of the loan proceeds and how they will benefit you or your business. Be sure to include a detailed plan for how you will use the funds and how you will generate the income to repay the loan. For example: "The loan funds will be used solely for my daughter's tuition and other education-related expenses. I have a budget in place and am confident that I can make the monthly loan payments while still being able to cover my other financial obligations." or "The loan funds will be used to purchase additional inventory and hire two additional employees, which will allow us to increase our sales and profitability. I have a solid business plan in place and am confident that these investments will enable us to repay the loan within 3 years."
• Include any supporting documents that may help your case , such as financial statements or a business plan. For example: "In addition to the documents mentioned above, I have also included a copy of my budget plan, which shows my projected income and expenses for the next 3 years." or "In addition to the documents mentioned above, I have also included a copy of my detailed business plan, which outlines my marketing strategy and projected financial performance."
• Request a specific repayment plan and timeline. Be realistic and considerate of the lender's needs when proposing a repayment schedule . For example: "I am requesting a loan repayment period of 3 years, with monthly payments of $1,500. I understand that this may be negotiable and am open to discussing alternative repayment terms that work for both parties."
• Express your appreciation for the lender's consideration and provide contact information for follow-up. Thank the lender for their time and make it easy for them to get in touch with you if they have any questions. For example: "Thank you for considering my loan request. I am confident that this investment will help my business grow and thrive / I am confident that this investment in my daughter's education will pay off in the long run. If you have any questions or would like to discuss further, please don't hesitate to contact me at 555-555-5555 or by email at [email protected]."

➤ You May Also be Interested in Our Sample Letter to Request an Alternative Payment Plan from a Creditor

Need to Write a Bank Loan Request Letter? Use Our Free Templates for Success

For applying loan in a bank or financial institution.

Dear (mr/miss etc. + Loan manager name),

Following my visit to the bank yesterday where all necessary papers were filed regarding my loan request, here are a few more details pertaining to the loan.

I have been a long-standing customer with (name of bank) for over (number) years now and I recently applied for a (personal/company) loan of ($/€ amount). This loan will allow me to pay for (reason needed) which I have been planning for some time now.

My preferred loan structure, after much thought, is a (secured/unsecured) loan. I believe this is the best option for me and I also hope to be able to pay it off within (X years).

I prefer to take out a shorter loan period rather than the popular long term packages, and therefore hope that you will be able to see this as a positive factor in granting me this loan.

I am currently employed at (company name) and have been the (name of position) for (No. of years). Should you require any references or further information, please do not hesitate to contact (my boss/the HR Dept. etc.) at any time. They can be reached on (tel. no.) or via email on: ([email protected]).

As requested by (Mr./Miss X), please find (enclosed/attached) copies of my most recent bank statements for the last (3/6) months.

I am available to come in and speak with you at any time, I do hope that you will look favorably on my request and I very much look forward to hearing from you.

(name/signature)

Bank Loan Request Letter for Small Business (SBA)

Dear [Loan Manager's Name],

I am writing to request a loan of $50,000 from the Small Business Administration (SBA) to fund the expansion of my small business, XYZ Company.

I have been self-employed as the owner of XYZ Company for the past 5 years and have consistently earned a net profit of $30,000 per year. Attached, you will find my tax returns and financial statements as evidence of my ability to repay the loan.

The loan funds will be used to purchase additional inventory and hire two additional employees, which will allow us to increase our sales and profitability. I have a solid business plan in place and am confident that these investments will enable us to repay the loan within 3 years. In addition to the documents mentioned above, I have also included a copy of my detailed business plan, which outlines my marketing strategy and projected financial performance.

I am requesting a loan repayment period of 3 years, with monthly payments of $1,500. I understand that this may be negotiable and am open to discussing alternative repayment terms that work for both parties.

Thank you for considering my loan request. I am confident that this investment will help my business grow and thrive. If you have any questions or would like to discuss further, please don't hesitate to contact me at 555-555-5555 or by email at [email protected].

[Your Name]

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Business Loan Application Letter Sample: Free & Effective

In this article, I’ll guide you through the process step-by-step, drawing from my personal experiences, and provide you with a handy template to get you started. Whether you’re a seasoned business owner or just starting out, these insights will help you craft a compelling letter that stands out to lenders.

Key Takeaways

• Understand Your Audience: Know the lender’s requirements and tailor your letter accordingly.
• Be Clear and Concise: Communicate your business’s needs and how the loan will be used in a straightforward manner.
• Provide Detailed Information: Include pertinent details about your business and your plan for the loan.
• Use a Professional Tone: Maintain a formal tone throughout the letter to convey seriousness and professionalism.
• Follow a Structured Format: Use a clear and logical structure to make your letter easy to read and understand.
• Include Supporting Documents: Attach essential documents that can vouch for your business’s credibility and financial health.

Step-by-Step Guide to Writing a Business Loan Application Letter

Step 1: understand the lender’s requirements.

Before you begin writing, it’s crucial to understand the lender’s criteria. Each financial institution has its unique set of requirements for loan applications. Familiarize yourself with these to tailor your letter effectively.

Step 2: Start with Your Contact Information

Begin your letter with your contact information at the top, followed by the date and the lender’s details. This establishes a professional tone from the outset.

Your Name Your Business Name Your Business Address City, State, Zip Code Date Lender’s Name Lender’s Institution Lender’s Address City, State, Zip Code

Step 3: Craft a Compelling Introduction

Trending now: find out why.

In the opening paragraph, introduce yourself and your business. Clearly state the purpose of your letter – to apply for a business loan – and the amount you are requesting. This sets the stage for the details that follow.

Step 4: Detail Your Business Plan

This is where you shine. Outline your business plan, emphasizing how the loan will contribute to your business’s growth. Be specific about how you intend to use the funds. Will they be used for expanding operations, purchasing equipment, or maybe for bolstering your working capital? Lenders want to see that you have a clear plan in place.

Step 5: Showcase Your Business’s Financial Health

Include a brief overview of your business’s financial status. Highlight your revenue, profit margins, and financial projections. This demonstrates to lenders that you have a viable business capable of repaying the loan.

Step 6: Mention Collateral (If Applicable)

If you’re offering collateral against the loan, specify what it is. This could be equipment, real estate, or inventory. Detailing the collateral reassures lenders about the security of their investment.

Step 7: Conclude with a Call to Action

End your letter by thanking the lender for considering your application and expressing your willingness to provide further information if needed. Include a polite request for a meeting or a conversation to discuss the application further.

Step 8: Professional Sign-Off

Sign off your letter with a professional closing, such as “Sincerely,” followed by your name and position within the company.

Template for a Business Loan Application Letter

[Your Name] [Your Business Name] [Your Business Address] [City, State, Zip Code] [Date]

[Lender’s Name] [Lender’s Institution] [Lender’s Address] [City, State, Zip Code]

Dear [Lender’s Name],

I am writing to apply for a business loan of [Loan Amount] for [Your Business Name]. As [Your Position] of the company, I am committed to guiding our business to new heights, and this loan is a crucial step in our growth strategy.

Our plan is to allocate the loan towards [Specific Use of Loan]. This investment is projected to [Expected Outcome of Loan Investment], enhancing our profitability and ensuring our ability to repay the loan.

Enclosed with this letter, you will find our business plan, financial statements, and cash flow projections, providing a comprehensive view of our business’s financial health and growth potential.

Thank you for considering our loan application. I am looking forward to the opportunity to discuss this further and am happy to provide any additional information required.

[Your Name] [Your Position] [Your Contact Information]

Tips from Personal Experience

• Personalize Your Letter: While using a template is helpful, adding personal touches that reflect your business’s unique aspects can make your letter stand out.
• Be Transparent: Honesty about your business’s current financial situation and how you plan to use the loan builds trust with lenders.
• Proofread: A letter free from grammatical errors and typos shows attention to detail and professionalism.

I’d love to hear your thoughts or experiences with writing business loan application letters. Do you have any tips to share or questions about the process? Feel free to leave a comment below.

Frequently Asked Questions (FAQs)

Q: What is a business loan request?

Answer: A business loan request is a formal request made by a business to a lender or financial institution for a loan to finance business operations or expansion.

Q: What information is typically included in a business loan request?

Answer:   A business loan request typically includes information about the business, including its financial history, plans for the loan proceeds, and a projected financial statement. 

It may also include personal financial information about the business owner or owners.

Q: How is a business loan request typically made?

Answer:   A business loan request is typically made in writing, through a loan application or business plan submitted to a lender or financial institution.

Q: What documentation is required to support a business loan request?

Answer:   Documentation that may be required to support a business loan request can include financial statements, tax returns, and personal financial information. 

It may also include business plan, projected financial statement, and any collateral that the business can offer.

Q: What are the potential outcomes of a business loan request?

Answer:   The potential outcomes of a business loan request can include the lender or financial institution approving the loan, denying the loan, or offering a modified loan amount or terms. 

The interest rate, repayment period, and other terms of the loan will be based on the creditworthiness of the business and the lender’s lending policies.

Q: What is a business loan request letter?

Answer : A business loan request letter is a formal written document submitted by an individual or a business to a financial institution or lender, seeking financial assistance in the form of a loan. 

It outlines the purpose of the loan, the amount requested, and provides supporting information to convince the lender of the borrower’s creditworthiness.

Q: How do I start a business loan request letter?

Answer : To start a business loan request letter, begin by addressing it to the appropriate person or department at the lending institution. 

Use a formal salutation such as “Dear [Lender’s Name]” or “To Whom It May Concern.” Introduce yourself or your business and clearly state the purpose of the letter, which is to request a loan.

Q: How should I structure a business loan request letter?

Answer : A business loan request letter should follow a professional and organized structure. It typically includes an introduction, a body, and a conclusion. 

The introduction should clearly state the purpose of the letter and provide essential details about yourself or your business. 

The body of the letter should elaborate on the loan request, including the amount needed, the purpose of the loan, and any supporting information or documents. 

Finally, the conclusion should express appreciation for the lender’s time and consideration, while offering your contact information for further communication.

Q: What tone should I use in a business loan request letter?

Answer : A loan request letter should maintain a formal and professional tone throughout. It should be respectful, concise, and polite. Avoid using overly technical jargon or informal language. 

It is important to demonstrate professionalism and credibility to increase your chances of a favorable response.

Q: How long should a business loan request letter be?

Answer : A business loan request letter should be concise and to the point, typically ranging from one to two pages. 

Avoid excessive details or unnecessary information that may distract from the main purpose of the letter. Keep the content focused, clear, and persuasive.

Q: What is the purpose of a business loan request letter?

Answer : The purpose of a business loan request letter is to formally request financial assistance from a lender or financial institution. 

It serves as a written proposal, outlining the borrower’s need for funds, the purpose of the loan, and the borrower’s ability to repay. 

The letter aims to persuade the lender that the loan is a viable investment with a solid repayment plan and potential for positive outcomes.

Q: How important is a business loan request letter?

Answer : A business loan request letter is crucial when seeking a loan from a lender or financial institution. 

It acts as a formal request, providing essential information about the borrower, the purpose of the loan, and the borrower’s ability to repay. 

A well-written and persuasive loan request letter increases the likelihood of the loan being approved, as it demonstrates professionalism, credibility, and a clear understanding of the borrower’s financial needs.

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20+ SAMPLE Loan Application Form Templates in PDF | MS Word

Loan application form templates | ms word, 20+ sample loan application form templates, loan application forms: what are they, elements of a loan application form, how do you create a useful loan application form, what are the different types of loans, when to use an application form, what is a student loan.

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Why is a loan application form important, step 1: keep the form on brand, step 2: make it simple and concise, step 3: be specific to your loan benefits, step 4: go online.

• Personal Loan
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Application Letter

Letter maker.

Many applicants rarely take time in making application letters, application emails , or professional cover letters assuming that a job resume would do or hiring personnel just won’t take time in reading them. While this may be true in some cases, it is always better to be safe than sorry. If you are curious about writing your application letter , this article would help you achieve an articulate composition to let you have that dream job of yours.

Free Formal Application Letter Template

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Free Professional Application Letter Template

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Size: 50 KB

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What Is an Application Letter?

Application letters are business letters  that are commonly attached before a document such as resumes. These are used by an individual to introduce him/herself to the probable employers and prove to them why he/she is suitable for the job or position.

How to Write an Application Letter

An application letter is an important tool that you often add along with your resume. The letter explains the reason for sending the resume to a hiring company or business. To wow your future employers, here are steps to writing an application letter.

Step 1: Preparation

Do your research. This way it would be easier to relate your actual skills to the requirements of the job application . Employers or screening personnel have a watchful eye on applicants who show effort in getting background check about the company which shows the interest the applicant has for the company or institution.

Step 2: Requirements vs Skills

Matching your skills to the requirements of the application is a great way to feature to employers why you are a perfect suit for the job or requirement. The example business analyst  application letter shown on the page shows such a comparison mentioning the requirements for the application example and the writer filling it with the skills that he has.

Step 3: Short and Concise

An employer usually does not have a lot of time and is more likely to read a short but concise letter rather than a detailed but professional cover letter . Make sure to include certain keywords or points in the letter that is sure to catch the attention of the employer such as key skill requirements. You may also see business reference letter .

Step 4:  Perfect Fit

There is a reason why the position is open for application and you are here for it. Refer to your list of accomplishments and skills. This would accentuate why you will be very useful to the company or organization and how it will also be advantageous for you to be in the company. You may also like two weeks notice letter .

What to include in an email when applying for a job?

These parts are all essential in writing the body of your application letter. Take note of these details to provide yourself a concrete content that would answer all of the critical questions that companies are curious about. The purpose of your writing, the position you are applying for, the qualifications you have for the job, this includes the skills and work experiences , and the medium that the company can contact you.

What are the sections of an application letter?

Introduction, this part of the letter explains why you are writing. In the Scholarship Grant Application Letter sample shown in this page, the writer can be seen introducing himself and the reason or purpose why he is writing. The body of the letter describes the details behind the purpose of the letter. Lastly, the conclusion usually contains a brief summary of the points being presented in the letter.

What is the purpose of an application letter?

The main purpose of an application letter is for employers to obtain verifiable information about job seekers, such as their contact information, skills, qualifications, employment history, etc. For job seekers, it is an opportunity to attract the employer’s attention so that they can grant the job seeker an interview.

What is the difference between application letter and cover letter?

An application letter is a stand-alone document that contains in-depth information about a job seeker’s skills and qualities. A cover letter is submitted alongside other documents, and it encourages the hire to read an applicant’s resume.

Every application letter is different depending on what it is exactly the writer is applying for. There are numerous examples of applications on this page that can be used as a reference or as-is for your next application letter whether for a marketing plan or a business application. Feel free to look around and just click on the download button for the sample that suits your needs.

Text prompt

• Instructive
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Write a letter to parents informing them about the upcoming parent-teacher conference at school

Compose a letter to students congratulating them on their achievements in the recent science fair.

Application Letter

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Loan Closure Letter Format & Sample In Word, Pdf

Loan Closure Letter Format:  Are you searching for some of the Best Loan Closure Letter Format Sample In Word & Pdf? If Yes, then here you will get these types of application letter sample.

Let me tell you first, To close an account with the bank from which you took your loan, follow & read their terms and conditions very carefully.

Then write the account closure request letter using the application samples given below. Submit with it some documents (e.g. Personal Loan account number, approval letter, other documents issued by the bank) and Identity proof (e.g. Passport, PAN card, Aadhar).

If the bank has any pre-closure amount, then they have to pay it. Then in a few days, the bank will send you the loan completion document. After that all the process of closing your loan account will be completed.

The letter samples given below can be used for any bank without any problem. For example, you can use them in the case of HDFC personal loan closure letter format or SBI home loan closure letter format.

Personal Loan Closure Letter Format

To, The Branch Manager (Bank Name), (Bank Address), (Date).

Subject: Request Letter For Loan Closure.

Dear Sir/Madam,

I, ___________(Write Your Name) have a personal loan in my account on your _______ (Mention Your Bank Name) bank. I am writing this application letter to request you to close my personal loan account bearing account number ____________ (Mention Your Loan Account Number). The reason for closure is ___________ (Mention the reason for the closure correctly here).

I would like to inform you that I have paid all the EMI, loans. You can check your records. As per the requirements of the bank, I am attaching the applicable documents with this application.

Kindly consider this request letter and do the needful as soon as possible.

Thanking you,

Yours Faithfully, (Your Legal Name), (Your Address), (Your Email), (Your Mobile).

Car Loan Closure Letter Format

To, The Bank Manager (Name of the Bank ), (Branch Address), (Date).

Subject: Closure of the car loan account.

Respected Sir/Madam,

I am writing this letter to state that, I am holding an auto/vehicle/car loan bank account in your ________ (Mention Your Bank Branch Name) branch.

All details of my account are listed below: Loan Account Holder Name:- Loan Account Number:- Loan Approved Amount:- My PAN Number:-

Currently, I am willing to pay all my remaining amount and at the same time, I want to close my loan account.

So I request you, please let me know the detailed process and necessary documents for it. So that I can pay the remaining amount quickly and close the account.

Thank you in advance.

Yours Truly, (Your Name), (Full Address), (Your Contact Details).

Home Loan Closure Letter Sample

To, The Branch Manager, (Bank Name), (Branch Name), (Branch Address), (Date).

Subject: Application for home loan.

With due respect, I Beg to say that I hold a loan account & account no is ___________ [Mention Your Bank Account No] with your __________ [Mention Your Branch Name] branch. For some personal reason, I want to close my home loan account. (You can specify the reason for this closure)

Therefore, you are requested to kindly close my account. I will always be grateful to you. If any other information or documents is required for it, kindly contact me on my mobile number. my mobile number is ____________ (Mention Your mobile Number).

Thanking You.

Yours Sincerely, (Your Name), (Address), (Your Account Details), (Contact Details).

Loan Closure Letter HDFC, SBI & ICICI

To The Bank/Branch Manager, [Bank Name], [Bank Address], [Date:__/__/__].

Subject: Personal/Home/Car loan closure application letter.

With due respect, I ______ [Your name], I am writing this letter to request that I want to close my personal/home/car loan associated with loan account no _______ [Mention your loan account no].

Now, that I am already paid my total due & I request you to please go through the process of pre-closing my loan.

If you need any additional information or documents to complete this process, you can let me know at the phone number below.

Yours Sincerely, [Your Name], [Phone Number], [E-mail Address].

Read Also: Application For Closing Bank Account Letter

Application For Closing Loan Account

To The Branch Manager, [Name of the Bank], [Branch Address],

Date: Day/Month/Year.

Subject: Loan account close application.

Most respectfully I beg to state that, I ______ [Your name], I am a saving account holder in your branch. Also, I have a loan account & my loan account number is ________ [Mention your account no]. I want to close my loan account for some personal reasons.

Therefore, I request you to close my loan account and provide me with all the original documents that I submitted when applying for the loan account.

We hope you’ll consider my request properly and begin the process of closing the account as soon as possible.

Yours Sincerely, [Signature], [Contact Details], [Address].

Loan Closure Letter Format Sample In Word & PDF

👉 [Download In Word / PNG / PDF ] 👈

FAQ’s On Loan Closure Letter Format Sample

How do you close a loan account? You can easily close your loan account by following the steps given below –

• Visit the bank with all required documents.
• Write a loan closure letter to the bank manager OR, You may be required to fill a form.
• If there is a pre-closing amount, then pay it.
• Return your credit card. (If issue)
• Take acknowledgment paper from your bank.
• Then your loan account will be closed automatically in a few days.

Which bank is best for personal loan? Below we have mentioned the names of some of the best banks in India for taking loans –

• State Bank of India (SBI): Interest Rate- 9.60% onwards , Loan Amount- Up to Rs. 20 lakh .
• ICICI Bank:  Interest Rate- 11.25% onwards , Loan Amount- Up to Rs. 20 lakh .
• HDFC Bank: Interest Rate- 10.75% onwards , Loan Amount- Up to Rs. 40 lakh .
• Bajaj Finserv:  Interest Rate- 12.99% onwards , Loan Amount- Up to Rs. 25 lakh .
• Axis Bank: Interest Rate- 12% onwards , Loan Amount- Up to Rs. 15 lakh .

Can we close HDFC loan online? Unfortunately, you cannot close our HDFC Bank loan online, for this, you need to visit your nearest HDFC Bank and close the loan account. Also, you need to pay a certain amount to pre-close your loan.

Is there any pre-closure charges for home loan in SBI? No, you don’t have to pay any penalty for pre-closing your SBI home loan on fixed and floating rate interest. However, you may have to go to any branch of SBI and fill up some forms for it.

Online receipt makers can help you create professional receipts for loan closings. These tools let you customize the template, add your logo, and track receipts. Using a Zintego online receipt maker can help you create a clear and concise receipt that meets all of the necessary requirements.

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Business Loan Application Letter

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Start-up or small business owners who are searching a business loan will have a better chance of success if they are able to position themselves as an attractive investment for banks and other types of lenders. Financial institutes want to see facts and figures so that they are able to determine how viable your business is. This is part of their risk assessment. Most banks and other lenders make their profit from granting loans. They want to approve loan applications, but the application needs to meet lending requirements. It therefor can be challenging to write a formal loan request letter for your business that will impress a lender.

So you will need to prepare more than only business loan request letter! Make sure that you also include a business plan including a well-designed financial outlook for the next 4 to 5 years.

The request letter itself should be kept to a single page (cover page). The request should be made in the first sentence including the amount required, so the lender learns what he or she needs to know without having to read the whole letter or turn to another page. This enables the bank to quickly forward the request to the right department (workflow).

​The details of the business should be clearly explained in one short paragraph. By keeping it compact, it shows that applicant knows what your business is and what you want to achieve.

The letter should also include the amount that the applicant has invested into the business from his or her own money. Why should a bank invest in a company you don’t want to invest in?

It is also recommended for the applicant to educate him or herself about business loans before beginning the process of gathering and organizing the required information. This will enable the applicant to be knowledgeable if their application is being considered, and they need to speak to a lending officer. Being prepared is half the work!

We have included sample business loan request letter. The parts in yellow should be replaced with your own data. Make sure that you send the letter including attachments by certified mail, so the applicant has proof of the time and date the letter was sent and received. All enclosure like a business plan, company certificate etc. should be copy of the orginal. Never send the original documents!

DISCLAIMER Nothing on this site shall be considered legal advice and no attorney-client relationship is established.

Leave a Reply. If you have any questions or remarks, feel free to post them below.

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Loan Letter Templates in PDF

Write Your Payment Commitment and Other Payment Conditions with template.net's Free Loan Letter PDF Templates. Loan Businesses Can Also Quickly Write Rejection, Loan Modification, Mortgage, and Approval Letters by Editing the Sample Texts. With the Download and Sharing Options, You Can Keep a Copy of Your Loan Letter or Send It to Your Clients and Banks Instantly.

• Loan Agreement
• Loan Application

Loan Application Letter

• Loan Letter
• Loan proposal
• Personal Loan Agreement

Loan Request Letter

Transport and Logistics Loan Application Template

Commercial Loan Underwriter Cover Letter

Loan Forgiveness Application Letter

Calamity Loan Application Letter

Customer Loan Rejection Letter Template

Business Loan Application Letter Template

Car Loan Application Letter Template

Personal Loan Application Letter

Loan Guarantee Letter

Business Loan Request Letter To Bank Manager

Short Loan Rejection Letter

Loan Sanction Letter

Letter of Explanation For Loan

New Business Loan Request Letter To Bank Manager

Loan Rejection Letter from Bank

Formal letters have certain rules that need to be followed while writing. The same applies for a loan letter. Writing a proper loan letter might not be something you are familiar with. However, that is hardly a problem. At template.net we have hundreds of templates that you can just download and start using for writing your loan letter. This will not only make the process easier and faster for you but also ensure that you are not making any mistakes.

Your busy schedule might be stopping you from writing loan letters of the quality that you would have preferred. Luckily we can help you. We have a range of templates that you can check out. They will not only help you to get started with creating a loan letter faster but also make sure that you are following the industry standard while doing so. They come in various themes and styles. Hence you shall be able to find one that suits your needs perfectly.

Editing our templates is quite easy as well. We tend to avoid custom software with steep learning curves. We want to make our templates as accessible as possible for our users. That is why we stick to software that our users are familiar with. These templates, for example, are compatible with PDF editors. So all you need to do is download the template and fire up the PDF editor of your preference and get started.

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