Closing Car Loan Application Procedure (with Samples & PDFs)
I have listed sample templates to help you craft an effective and professional closing car loan application procedure.
Also, I would like to point out that you can also download a PDF containing all the samples at the end of this post.
Car Loan Termination Application Process
First, find the sample template for closing car loan application procedure below.
To,
The Branch Manager,
[Bank’s Name],
[Branch’s Address],
Subject: Request for Closure of Car Loan Account
Dear Sir/Madam,
I, [Your Full Name], the holder of the car loan account number [Loan Account Number], request for the closure of the said account since I have fully repaid my car loan as of [Date of last EMI payment].
I kindly request you to initiate the necessary procedures to close the car loan account and provide me with a No Objection Certificate (NOC) as well as a loan closure certificate. These documents are important as they serve as proof that I have fulfilled all my loan obligations.
Please inform me about any additional paperwork or procedures that need to be completed for this process. I am ready to visit the bank branch at your convenience for the same.
I am grateful for your assistance during the loan tenure and look forward to your prompt action in this matter.
Thank you.
Yours Sincerely,
[Your Full Name]
[Your Contact Number]
[Your Email ID]
[Your Residential Address]
Date: [Current Date]
Place: [Current Place]
Below I have listed 5 different sample applications for “closing car loan application procedure” that you will certainly find useful for specific scenarios:
Car Loan Closure Application Following Car Accident and Total Loss
To,
The Branch Manager,
[Bank Name],
[Branch Address],
Subject: Car Loan Closure Application Following Car Accident and Total Loss
Dear Sir/Madam,
I, [Your Name], holding the account number [Account Number], had availed a car loan for my [Car Make and Model] bearing registration number [Car Registration Number] from your esteemed bank on [Loan Taken Date]. I regret to inform you that my car met with an accident on [Date of Accident] which resulted in a total loss of the vehicle.
As per the assessment of the insurance company, it has been declared a total loss, and I have received the insurance claim amount. I would like to use this amount to settle my outstanding car loan with your bank.
My loan account number is [Loan Account Number]. I request you to kindly provide me with the exact outstanding amount, including any prepayment charges if applicable, and the procedure to close the loan. I would like to complete the loan closure process at the earliest.
Kindly acknowledge the receipt of this application and guide me through the next steps. I would be grateful for your prompt attention to this matter.
Thanking you,
Yours faithfully,
[Your Name]
[Your Address]
[Your Contact Number]
[Email Address]
Application for Re-Evaluation of Financing Terms Before Car Loan Closure
To,
The Branch Manager,
[Bank Name],
[Bank Branch],
[City],
Subject: Application for Re-Evaluation of Financing Terms Before Car Loan Closure
Respected Sir/Madam,
I, [Your Name], am writing this application to request a re-evaluation of the financing terms attached to my car loan (Account No: [Your Account Number]) before its closure. I have been servicing this loan for the past [loan period, e.g., 3 years], and now I am approaching the end of the loan term.
Given the recent changes in the economy and the financial market, I believe it would be prudent for both parties to reassess the terms of the car loan prior to its closure. This would help ensure that the closure process is fair, transparent and in line with the current market conditions.
I kindly request you to initiate the re-evaluation process at the earliest, as it will allow me sufficient time to make any necessary arrangements before the loan closure. I am willing to provide any additional documents or information that may be required for the re-evaluation process.
Looking forward to your prompt attention and cooperation in this matter.
Thanking you,
Yours sincerely,
[Your Name]
[Your Address]
[City]
[Contact number]
[Email ID]
Transferring the Car Loan Balance to Another Lender Application
To,
The Branch Manager,
[Current Lender’s Name],
[Branch Address]
Subject: Application for Transferring the Car Loan Balance to Another Lender
Respected Sir/Madam,
I, [Your Full Name], holding a car loan account with your esteemed bank (Loan Account Number: [Your Loan Account Number]) availed for purchasing a [Car Make and Model]. I have been regular in my loan repayments and have maintained a good track record.
Due to recent changes in my personal financial situation, I have found a more suitable loan offer from [New Lender’s Name]. Therefore, I request you to kindly initiate the process of transferring the outstanding balance of my car loan to the said lender.
I have already obtained a loan sanction letter from the new lender and have enclosed a copy of the same with this application. Kindly provide the necessary clearance and documents required for the transfer at the earliest.
I understand that there may be charges related to this transfer and I am willing to bear them as per the applicable terms and conditions. Please let me know if there are any additional formalities or documents required from my end to facilitate the smooth completion of this transfer process.
I appreciate your prompt action and assistance in this regard. Kindly acknowledge the receipt of this application and keep me informed about the progress of the loan transfer process.
Thank you for your attention and cooperation.
Yours sincerely,
[Your Full Name]
[Your Contact Number]
[Your Email Address]
Date: [Date of Submission]
Application for Car Loan Closure Due to Vehicle Sale
To,
The Branch Manager,
[Bank Name],
[Branch Name],
[Branch Address],
Subject: Application for Car Loan Closure Due to Vehicle Sale
Respected Sir/Madam,
I, [Your Name], am writing this letter to inform you that I have sold my car, [Car Make and Model], bearing Registration Number [Car Registration Number] on [Date of Sale]. The said car was purchased with the help of a car loan from your esteemed bank under Loan Account Number [Loan Account Number].
As the car has now been sold, I would like to request you to kindly close the said car loan account. I am ready to clear any outstanding dues or charges, if applicable, and would appreciate if you could provide me with a statement mentioning the outstanding amount to be paid for the closure.
Kindly consider this application as a formal request for car loan closure and guide me on the necessary steps to be taken to complete the process at the earliest. Your prompt assistance in this matter would be highly appreciated.
Thanking you in advance.
Yours faithfully,
[Your Name]
[Your Address]
[Your Contact Number]
[Your Email Address]
Date: [Current Date]
Early Repayment for Car Loan Closure Application
To,
The Branch Manager,
[Bank Name],
[Bank Branch Address]
Subject: Early Repayment for Car Loan Closure Application
Respected Sir/Madam,
I, [Your Name], have availed a car loan (Loan Account number: [Loan Account Number]) from your esteemed bank on [Date of Loan Disbursal] for purchasing a [Car Make and Model]. The loan tenure was [Loan Tenure] months, with an EMI of INR [Amount] per month.
I am writing this letter to express my intent to close the loan by making an early repayment of the outstanding principal amount. I have maintained a good track record of timely EMI payments, and my current outstanding loan amount is INR [Amount].
I kindly request you to provide me with the necessary details, including foreclosure charges (if any), the exact amount to be paid, and the required procedure to close the loan.
Please find enclosed a copy of my loan account statement for your reference. I would appreciate your prompt assistance in this matter, as I want to close the loan at the earliest.
Thank you for your attention to my request. I look forward to a favorable response from your end.
Yours faithfully,
[Your Name]
[Your Address]
[Your Contact Number]
[Your Email Address]
[Date]
How to Write Closing Car Loan Application Procedure
Some writing tips to help you craft a better application:
- Start with your contact information: Begin the application with your name, address, and contact details to identify yourself.
- Include the date: Mention the date of writing the application to keep a record of it.
- Address the recipient: Directly address the person in charge of closing the car loan, such as the loan officer or branch manager.
- Specify the subject line: Clearly state the purpose of the application in a brief and concise subject line.
- Mention your loan account number: Provide your car loan account number for easy reference and tracking.
- State your intention: Clearly state that you wish to close your car loan and mention the reasons for doing so.
- Provide car loan details: Briefly summarize the car loan details, such as the loan amount, interest rate, and tenure.
- Request for a settlement letter: Ask for a settlement or closing letter that outlines the final payment amount and due date.
- Ask for necessary documents: Request the bank to provide you with the list of required documents to close the car loan, such as the No Objection Certificate (NOC).
- Specify your preferred mode of payment: Indicate your preferred method to make the final payment, such as online transfer, cheque, or demand draft.
- Confirm the procedure: Request the bank to confirm the closing procedure and the exact steps to be followed.
- Thank the recipient: Express gratitude for their assistance and cooperation in closing the car loan.
- End with your signature: Conclude the application with your full name and signature to make it official.
Related Topics:
- BSNL Connection Closure Application Request
- Credit Card Closure Application Letter
- Recurring Deposit (RD) Account Closure Application
That’s it.
I am sure you will get some insights from here on how to write “closing car loan application procedure”. And to help further, you can also download all the above application samples as PDFs by clicking here.
And if you have any related queries, kindly feel free to let me know in the comments below.
