Write a letter to a bank customer declining his loan application on the ground that his salary position does not allow the bank to sanction him the loan

Q. Write a letter to a bank customer declining his loan application on the ground that his salary position does not allow the bank to sanction him the loan.

Sonali Bank Ltd.

Jatrabari Branch

Jatrabari, Dhaka 1205

Telephone: 02-9562 Fax: 02-9563

 Email: sonalijatrabari@sonalibank.com

Our Ref: Decline/Consumer (P-36)/09

Thursday, May 21, 2009

Mr. Golam Mustafa

37 South Jatrabari,

Dhaka 1205

Sub: Your application for a loan of tk 75,000.

Dear Sir,

It is our pleasure to find you as one of our very old and valued clients. We hope, you will continue enjoying our personalized services as to your banking needs.

You have applied for a loan of Taka 75,000 to buy one motorcycle under our ‘Consumer Credit Scheme’, which is a very popular collateral-free loan program.

One borrower, under this program, has to submit to us a number of undated cheques of his bank account written in favor of our bank in advance and duly signed, which we are supposed to use for settlement of the loan, if the borrower ever fails to adjust his or her

debts.

Salaried people whose monthly salaries are commensurate with monthly repayment installments of the proposed loan are eligible to avail of this loan facility.

As we have found out, your present monthly basic salary is Taka 16,000 and your takehome pay (after adjustments of cuts by your employer) is Taka 9,000. In no circumstances we can ask you to pay more than TK 3,600 as loan installment. Because, at

least Taka 5,400 (one-third of your basic pay) must be at your hand to defray your own personal financial needs.

If you avail of Taka 75,000 to be adjusted in five years, your monthly installment for adjustment of the loan will be around Taka 6,700, which does not cover by what you are now drawing as your take-home pay. We are extremely sorry to regret your loan application.

Abdul Quiyum

Manager