Debt Payment Agreement Letter
Debt is a sum of money that is owed to someone or is due to someone. It is that outstanding amount that needs to be cleared right away. Debts tell a lot about a person’s personality; hence it is mandatory that debts are checked and repaid from time to time. A timely cleared debt not only gives you a chance to better your goodwill in the market but also enables you to raise credits from people again whereas a person who wouldn’t pay his debts, not only loses his reputation but also loses his chance to ask for anything the other time.
A debt payment agreement letter is hence made before any credit is given to a person so that there stands a legal recognition of this fact and this act. In a fast paced world, as we live in today, it is important to maintain a good paperwork, especially to not put yourself in a state to be betrayed. This letter entails one to hold responsibility for his debts so that the repayment is ensured. Both parties, by way of this letter, agrees to the fact that credits have been raised and debt has to be repaid.
Given below is a sample of a debt repayment agreement letter.
14 Mayfair Road,
Subject: Regarding agreement of repayment of debts.
This is to bring to your notice that we at Kennedy International believes in assisting people financially for their growth in all spheres. Besides that, we maintain a healthy relationship with the people we lend money to. Call it a good habit or a paperwork formality, but we strongly believe that relevant documents are called essential because they play that kind of role in any legal work. Debts tell a lot about a person’s personality. Hence it is mandatory that debts are checked and repaid from time to time.
Let us both, by way of this letter, acknowledge that we have given you a loan of Rs. 50,00,000 for expansion of your business which encompasses dealings in the textile industry and that this loan is owed to us by you by the end of 10 years along with interest @2.9% p.a. Please find attached to this letter is a letter of acknowledgment which needs to be attested by you thereby agreeing to the above-said information. We do not intend to offend anybody. Also, please keep us updated on anything that you would want for us to do, we would love to assist you in any manner possible. I assure you we will always be at our service while assisting you.