Hardship Letter To Creditors


An individual or organization seeks credit when they are unable to arrange financial sum for a certain prospect or endeavor. Sometimes the person who has taken a loan is unable to make the scheduled payment due to a certain hardship they are facing and in such a situation they need to write a Hardship Letter To Creditors to make them aware of their hardship and the reason behind the delay in the payment. It is common courtesy, and such letters are written on a day to day basis.

A few things need to be kept in mind while writing such a letter. The letter needs to be grammatically correct, structurally right and free from any errors in spelling. While writing the letter use a formal and polite tone. Be apologetic for the delay in payment and make clear the hardship¬†you are facing. Appeal to the creditor’s sense of sympathy and ask for an extension in the period of payment. End the letter by thanking the reader and showing your gratitude.

Sample Letter:

Following is a sample of Hardship Letter To Creditors.



311/2, Corner Market,
Gandhinagar Extension,
Gujarat 38241

January 29, 2011


The Accounts Manager
Apex Finance and Crediting
Gandhinagar Extension,
Gujarat 38241

SUBJECT: Notification of Hardship

Dear Ms. Semanti Mahajan,

I write this letter with great regret to inform you that I have been delayed in making the payment of my annual interest against the loan I had taken from your company dated DD/MM/YYYY, for the purpose of the building of my house for a total amount of Rs. 10,00,000. The amount was lent by your company generously after the submission of a plot of land just outside of the city as mortgage collateral. The construction of the house is complete. The delay is owing to the national economic recession in the textiles business. This is the first time I have been delayed in making the payment of a due installment.

I have paid all my installment at the time they were due and have till now repaid 70% of the capital lent. Only 30% of the total capital lent remains to be repaid, and I am repaying that at the interest of 10.11% every fiscal year. I have enclosed all of my prior receipts of payment for your consideration. This is the first occasion of delay on my part, and I hope you will be kind enough to allow me an extension period of repayment of at least a month so that I may be able to arrange the amount overdue and make the payment in full. I request you to take into consideration my loyalty of being a customer of 20 years to your company while making your decision.

I thank you for your time and consideration and await a favorable reply at your convenience.

Thank you,

Rahim Patil

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