Loan Payoff Document

A loan payoff document is issued to inform the lender about the borrower’s intention of paying off a certain loan debt before its scheduled date of amortization. The document comprises of a complete itemized record of the amount of money the borrowers owes inclusive of the interest rates and rebate or penalty figures (if any). The document expresses the borrower’s wish to pay off the loan and suggests a probable way of implementing the said wish.

Sample Loan Payoff Document

Loan Payoff Document

This loan payoff document is to notify the lender, Joey Tribbiani about the borrower Rachel Green’s intention of paying off the remaining principal balance along with the repayment installments and the cumulative interest rates within the end of July  2012, that is, prior to the scheduled amortization date which was January 8, 2013.

The borrower, here, would like to mention that he owed the lender a principal amount of 36000$ of which the borrower has already paid him 1000$ in the last four months. Thus, the remaining principal balance amounts to 26000$ which the borrower intends to pay off within the 28th of July, 2012 along with the daily interest rate of 5% which when added to the principal amounts to a good amount of 38000$.

The borrower finds it relevant to mention here that the borrower owes no payment penalties to the lender. However, the borrower would like to appeal for a 3% rebate in the interest rate owing to the early payoff of the loan.

The borrower would also like to inform that she intends to send the payoff amount via demand draft payable within six months in the name of the borrower with the aforementioned date. However, if the lender is uncomfortable with the suggested mode of payment, the borrower is ready to make the payment in whichever mode the lender finds suitable.

Thanking You,

Rachel Greene.

Signature: ______________

Posted in Loan Documents