Introduction
Borrowers often require legal drafts and templates to communicate with banks, NBFCs, and financial institutions for issues like loan restructuring, settlement requests, complaints against harassment, and legal notices. Having a well-structured legal document ensures that borrowers protect their rights and follow a legally compliant approach in dealing with lenders.
This section provides a collection of legal drafts, including sample complaint letters, restructuring requests, loan settlement applications, legal notices to banks, and FIR templates against recovery agent harassment.
1. Importance of Legal Drafts in Loan Disputes
Legal documents help borrowers:
- Protect their legal rights when dealing with banks.
- Communicate formally with financial institutions.
- Seek legal remedies for harassment, loan restructuring, and settlements.
- Ensure compliance with RBI guidelines and banking laws.
2. Sample Complaint Letter to Bank for Loan Restructuring
[Your Name]
[Your Address]
[City, State, PIN Code]
[Email]
[Phone Number]
Date: [DD/MM/YYYY]
To,
The Branch Manager
[Bank Name]
[Branch Address]
[City, State, PIN Code]
Subject: Request for Loan Restructuring Due to Financial Hardship
Dear Sir/Madam,
I am writing to formally request a loan restructuring for my [Loan Type: Home/Personal/Business] loan account no. [Loan Account Number] due to financial distress caused by [reason – job loss, medical emergency, economic crisis, etc.].
I kindly request the following restructuring options:
1. Reduction in EMI
2. Extension of Loan Tenure
3. Moratorium on EMI payments for [X] months
As per RBI’s Loan Restructuring Guidelines (RBI/2023-24/82), I request you to consider my case and provide a feasible repayment solution.
I have attached the necessary financial documents for your reference. Kindly acknowledge my request and provide a response at the earliest.
Sincerely,
[Your Name]
[Your Signature]3. Loan Settlement Request Letter to Bank
[Your Name]
[Your Address]
[City, State, PIN Code]
[Email]
[Phone Number]
Date: [DD/MM/YYYY]
To,
The Loan Recovery Department
[Bank Name]
[Branch Address]
[City, State, PIN Code]
Subject: Request for One-Time Loan Settlement
Dear Sir/Madam,
I am writing to request a One-Time Settlement (OTS) for my loan account [Loan Account Number] due to financial hardships.
Due to [job loss/medical emergency/business failure], I am unable to continue regular EMIs. I request a final settlement amount that I can pay in full to close the loan.
As per RBI’s Loan Settlement Guidelines (RBI/2023-24/201), I request a waiver on penalties and interest accumulation.
I kindly ask for a meeting to discuss the settlement terms and finalize the process.
Sincerely,
[Your Name]
[Your Signature]4. Complaint Letter Against Loan Recovery Agent Harassment
[Your Name]
[Your Address]
[City, State, PIN Code]
[Email]
[Phone Number]
Date: [DD/MM/YYYY]
To,
The Branch Manager
[Bank Name]
[Branch Address]
[City, State, PIN Code]
Subject: Complaint Against Loan Recovery Agent Harassment
Dear Sir/Madam,
I wish to lodge a formal complaint against your bank’s recovery agent [Agent Name/Agency] for harassment related to my loan account [Loan Account Number].
The following unethical and illegal actions were taken against me:
1. Harassment through frequent calls beyond RBI-permitted hours.
2. Threats of legal action, defamation, and physical intimidation.
3. Calling my family members and workplace to pressurize me.
As per RBI’s Fair Practices Code (RBI/2024-25/41), banks must ensure ethical loan recovery.
I request an immediate investigation into this matter and strict action against the concerned agent.
Sincerely,
[Your Name]
[Your Signature]5. Legal Notice to Bank for Wrongful Freezing of Account
[Your Name]
[Your Address]
[City, State, PIN Code]
[Email]
[Phone Number]
Date: [DD/MM/YYYY]
To,
The Branch Manager
[Bank Name]
[Branch Address]
[City, State, PIN Code]
Subject: Legal Notice for Wrongful Freezing of Bank Account
Dear Sir/Madam,
I am issuing this legal notice regarding the wrongful freezing of my bank account [Account Number] without prior notice.
According to RBI Guidelines (RBI/2023-24/17), banks must provide a legal notice before freezing any account. Your actions have caused financial and mental distress, and I demand immediate action to:
1. Unfreeze my account within 7 days.
2. Provide a written explanation for the account freeze.
Failure to comply will compel me to approach the RBI Banking Ombudsman, Consumer Forum, and High Court for damages.
Sincerely,
[Your Name]
[Your Signature]6. FIR Format for Filing a Complaint Against Loan Recovery Agent Harassment
To,
The Station House Officer
[Police Station Name]
[City, State, PIN Code]
Subject: Filing an FIR Against Loan Recovery Agent Harassment
Respected Sir/Madam,
I wish to file an FIR against [Agent Name] representing [Bank/NBFC Name] for harassing and threatening me regarding my loan.
The following acts were committed:
- Frequent threatening calls and intimidation.
- Threats of property seizure without legal notice.
- Harassment of family members and workplace colleagues.
I request you to register my FIR and take immediate legal action.
Sincerely,
[Your Name]
[Your Signature]7. Conclusion
Having access to proper legal drafts ensures that borrowers can legally defend themselves against unfair loan recovery actions, request restructuring, or challenge wrongful practices. These documents help borrowers assert their rights under RBI guidelines and Supreme Court judgments.
For personalized legal assistance and customized drafts, visit www.advocateadarsh.com or consult Advocate Adarsh Singhal for expert legal advice.