A loan application letter in Nigeria is a formal document that you write to a potential employer or financial organization to explain why you need the loan.
The loan application letter presents you as a unique personality, showcasing your accomplishments and abilities in an effort to catch the hiring manager’s or application reviewer’s eye.
This letter should pique the manager’s interest enough to prompt him to ask for an interview with you by highlighting your essential credentials for the loan.
Although there are many opportunities to do so, a Loan Application Letter position won’t just fall into your lap. To increase your chances of landing a job, create a Loan Application Letter cover letter that stands out to hiring managers.
The majority of the time, a loan application in Nigeria stands out when you include an application letter outlining your interest in the organization as well as your qualifications, experience, and talents. This letter also demonstrates to the lender why you are the best candidate for the loan.
When composing a loan application letter in Nigeria the following details should be taken into consideration:
1. Address Your Letter To The Right Authority
Any correspondence must be addressed to the appropriate person. It is highly important since it marks the beginning of a formal dialogue, and you want this to get off on the proper foot. Always try to determine to whom the application must be filed and be sure to address it. Its our first pick on how to write a loan application letter in Nigeria.
2. Reason For The Loan Request
It will be too ambiguous and give off an air of uncertainty to request a certain amount of money without stating why you need it. In order to assess whether your need for the money is fair and whether it will be put to good use, the lender has to know why you require it. Its our second pick on how to write a Loan application letter in Nigeria.
The legality of the situation is also crucial because they don’t want the money to be utilized for illicit activities like buying drugs, etc. Consequently, a debtor would want to know whether their funds are being used in a legal manner.
3. Specify The Amount You Need
A particular sum must be stated when you have a valid justification for the loan request because this will help the lender determine whether you have the borrowing capacity.
If your earnings are high enough to cover the cost of returning the borrowed funds, that is. It also indicates whether the amount borrowed is appropriate for the purpose for which it was borrowed, and its our third pick on how to write a loan application letter in Nigeria.
4. Positive Work History Or Loan Repayments History
You can assure that the money will be there if you have good behavior and a strong employment history and also if you’ve requested for loans in the past and you paid and settled all on time. Its one of what employers or Financial organization consider when giving out a loan. Its our fourth pick on how to write a loan application letter in Nigeria.
5. Mention How You Intend To Repay The Loan
This expresses your desire to refund the money. Because it provides a complete picture of the loan cycle, this is important. its our fifth pick on how to write a loan application letter in Nigeria.
Be truthful and accurate when giving out information: Because lending money is risky in and of itself, maintaining a strong credit history depends heavily on you being truthful and accurate about the circumstance.
Loan Application Letter Format
In writing loan application letter in Nigeria, each key topic is covered in a distinct paragraph in the loan application letter’s six-paragraph standard structure.
The material comprises the loan amount requested, a description of your company, the loan’s goals, information about your target market and competitors, as well as your business’s investment level.
Address the letter to the person who handles business loans by calling the bank and requesting their name.
Loan requests come from business owners for a variety of reasons. The owner of a decorating company asks for a loan in the amount of 1,000,000 in this sample loan application letter so she can increase the size of her warehouse.
To pique interest in her loan application, she includes details about her company’s achievements.
Dear Mr A
I am requesting a business loan in the amount of 20,000,000 for the purpose of expanding my warehouse facilities. My business has experienced significant growth over the past two years.
This increase in business necessitates I expand my current warehouse facilities to accommodate a larger inventory.
I have significant experience in the home decorating business and I am considered an expert consultant in the industry.
My interior design plans have been featured in several national magazines, including Decorating Digest, Home Embellishments, and JeanAnn’s Town and Country Designs.
I started Lindon’s Home Decorating Services in 1995 and the company has earned a profit consistently year after year, even during the recent recession.
The market for this business is heavily dependent on the housing market and the health of the economy. Over the years, I have pursued and won major contracts with national hotels.
This steady stream of work protected my business during the recent recession.
Today, the housing market is improving rapidly and the projected growth exceeds prerecession numbers. In addition, sharp increases in the building supply market suggest a growing trend in home remodelling.
My customer list includes five large hotel chains and two large national corporations that provide my company with new work orders each month.
I utilize cost-effective marketing strategies that result in an average of 200 new orders every month from private homeowners.
To date, I have invested and recouped through profits of 10,000,000 of my own money. I intend to invest 15,000,000 of my own money for this specific project.
My collateral consists of business assets with a fair market value 80,000,000 and personal assets valued at 160,000,000
I am enclosing my business plan, which details the reasons for the loan request. You may contact me at 08011111111 if you have any questions.
Chief Executive Officer
Bukky’s Home Decorating Services
A loan application letter in Nigeria serves as a formal introduction between you and your prospective lender, and in most cases helps you get ahead of other loan seekers giving your potential lender a reason why you are ahead of other applicants.
Nigeria which has a much more competitive circle in comparison with what happens when jobs are advertised with thousands of applicants showing interest, an applicant letter helps you stand out.
Frequently Asked Questions (FAQs) On How To Write A Loan Application Letter In Nigeria
How Do You Write A Loan Application Letter In Nigeria?
- Address to the right authority.
- Reason for the Loan i.e. how the money will be spent.
- Be Specific about the amount.
- Present positive attributes about yourself to ensure you are trustworthy.
- Mention how you intend the loan to be repaid.
How Can I Write Letter To Bank Manager For Loan Application?
Dear Sir/Madam, With all due respect, I want to inform you that my name is “mention your name” and I need a personal loan of amount _____ from your bank
How Do You Write A Loan Proposal?
- Use simple, plain language. Avoid technical terms and acronyms.
- Don’t forget that your proposal’s purpose is to show your company at its best. Sell yourself!
- Throughout the proposal, focus on showing why your venture will succeed.
- Image counts.