This sample letter sets forth a demand for payment on an overdue loan. This generic
form gives notice to the borrower that the loan is now overdue and states that the
borrower is now in default of his or her obligation to repay the principal and interest.
The letter demands full and immediate payment in order to avoid the lender from
instituting other legal remedies, including legal proceedings. This template form is
intended to supply standard language and can be modified to fit the needs of any lender
demanding payment of an overdue loan.
DEMAND FOR PAYMENT
Dear_____(name of recipient)_________
Please be advised that you are in default of your obligation to repay the amount of
_____________________________________ DOLLARS ($____________) which was
loaned to you on ______________ (date of original advance) plus interest in the amount
of __________. The total amount of __________ is now overdue and you have failed to
repay the same despite of repeated requests for payment by us. This letter shall serve as
your final notice.
Unless payment of the above amount is received by us in full within ________ ( ) days
from the date of this letter, we will have no alternative but to exercise the rights and
remedies we have under the law to enforce such payment, including but not limited to
institution of legal proceedings against you to recover the above amount, together with
accrued interest and legal expenses.
In order to avoid the additional costs of added interest, collection fees, and/or court costs,
we suggest that you resolve this matter by immediate, full payment.
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