If you are in a situation to write a loan refusal letter to an employee of yours or on the behalf of HR and you are looking at how to. You can get help from our sample loan refusal letters provided below to write your own. Leave your requests in the comment box below.

Table of Content:

• Easy format of sample letter refusing a loan to the employee due to not company facing a crisis during the Lockdown.
• Easy template of the sample refusal letter because of already a payment standing and further loan can not be issued.
• Sample letter declining loan request due to incomplete collateral and low credit score.

Sample Letter Refusing Loan Request Due to Company Facing Crisis During Lockdown

To: Mr. Dev Kumar.

Production Manager.

OCV Products.

Subject: Letter to decline loan request.

Respected Sir,

This letter is in response to your request for a loan earlier this week. We are considerate of the crisis faced by everyone in this situation of a lockdown and crashing economy. You are aware that in this situation company is barely not going bankrupt as there are no customers and we are managing our cost and profit margins at our all-time low. We wish to be helpful to our staff and family but it is not possible to provide loans in this situation of recession and lockdown. What we can do to help all of our employees and you are providing them with an advance salary for future months. If you are willing for that let us know we would transfer your next month`s paycheck immediately to help you in this situation. We understand the need for this issue but this is the only way we can help right now. Thanks.

Human Resource.

Sample Letter Refusing Loan Request Due to a Payment Already Standing

To: Mr. Akshay Khanna.

Assistant Accountant.

Ambuja Cements.

Subject: Letter to decline loan request.

Respected Sir,

It is to notify you regarding the loan request that you made on Monday with HR. The company is always here for its employees and in the hour of need, we have always granted and provided loans as we consider our staff our family. However, this time after a meeting discussing your case we have been advised to not issue any more loans. You had already taken a loan of Rs 5 lacks 8 months back. 50% payment which is already withstanding. We have been deducting the loan from your salary as you have not made a payment yourself apart from the deduction from the salary. We can not advance you any more loans if the last loan is not paid back already. Until you pay the remaining amount from your previous loan, we are sorry. We can’t lend you any more loans. Thanks.

Human Resource.

Sample Letter Refusing Loan Request Due to Low Credit Score

To: Mr. Ajay Verma.

Finance Department.

QUICK Water Solutions.

Subject: Letter to decline loan request.

Respected Sir,

This letter is in response to the loan request made by you this month. We have discussed the situation in a meeting for providing loans to the employees as already 20% of the employees have loans from the company and payments are not being made even after a whole year. We have discussed your low credit score issue. We are sorry to hear that company would not be able to provide loans in this situation. Your only source of income is the salary and we can not make that many deductions as well. hope you will understand. Thanks,

Human Respource Office.