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5 Best Format Examples of Loan Application Letter in Nigeria 2023 Code

Loan Application Letter in Nigeria – Do you wish to apply for a Loan in Nigeria? Whether it’s a business Loan or a personal loan, knowing how to properly write loan application letter can help you obtain the loan you are currently looking for. Do you know the right format in writing a loan application in Nigeria? If no, then continue reading this post to see the best loan format for all types of loan in Nigeria.Information Guide Nigeria

A well written application letter can be just what you need to land that loan you’ve been waiting for. Most business owners often apply for a business loan to maybe expand their business enterprise, or to cover for a new business idea they wish to venture into. However, getting the loan isn’t as easy as it may seem sometimes. Although, there are several financial institutions that offers loans to business owners, but they usually require you to write an application letter before getting the loan. That’s why you need to learn the proper format in writing a loan application.

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What is a Loan Application Letter?

A loan application letter is formally written application letter to a your employer, financial institution, or company to express your intention of acquiring a business or personal loan from them.

The loan application letter highlights your personal achievements, skills, and life as an individual. It helps you to gain the attention of the employer or the financial institution responsible for reviewing the loan applications.

For your loan application to be approved, it must be interesting enough to the manager, and it must highlight your key qualifications that makes you fit for the type of loan you’re requesting for.

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How to Write a Loan Application Letter

To write a good loan application letter, follow the key points below:

1.    Address the Letter to the Right Authority

One of the important key note of writing a loan application letter is addressing it to the authority. If your loan application letter is addressed to the wrong authority, then your loan application will not be processed. Always confirm the right authority to which you are expected to address the loan application before addressing your letter. For example: HR, Your Manager, or Loan Officer.

2.    State Your Reasons For Requesting the Loan

When applying for a loan, whether for business use or personal use, it is important that you explain in details how the money will be spent. When you apply for a loan with vague explanation of how the money is to be spent, then your loan application may not be approved. The lender needs to know why you need the money in other to determine if it is reasonable or not.

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3.    Be Specific About the Amount you want

Always be specific about the amount you’re requesting for when applying for a loan. It is believed that if your reason for requesting a loan is legitimate, then you should know the exact amount of loan you need to solve your problem. Also, this will help the lender know if you have the borrowing capacity for the amount you’re requesting for.

4.    Present Your Positive Attributes

When applying for a loan, make sure you describe all your good attributes in the application letter to show the lender that you are trustworthy. Describe your positive work history, and what you can offer to guarantee that the loan will be paid on time.

5.    Describe How You Intend to Pay the Loan

This a an important part of the loan application letter. Make you depict your intention of repaying the loan if granted to you. This will let the lender know that you are indeed worthy of the loan you are requesting for.

6.    Make Sure the Information You Provided are Correct and be Honest

Money lending is a sensitive issue, that’s why money lenders only loan money to people who are honest and factual about the situation. Also, it is important that you keep a good credit history, to enjoy smooth loan application.

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Loan Application Letter (5 Best Format)

The loan application letter is divided into six paragraphs, with each paragraph addressing a major topic like the loan amount, description of your business, purpose of loan, target market, repayment plan, etc. See the best loan application letter format below:

Business Loan Application Letter Format

Let’s take a look at how to write a business loan. Taking a case study of a businessman who owns a furniture business and is requesting for a loan amount of N30 million to expand his business.


Mr. Victor Nnaji

Chief Executive Officer

Nnaji’s Furniture Homes




Mr Johnson MichaelJAMB Result

The manager

Administration Department

XYZ Co. Ltd.


Application for Loan to Expand My Business

Dear Mr Johnson,

I am requesting a business loan of N30 million to help me expand my furniture business most especially my warehouse facilities. In the last 2 years, my business have experienced a major boost in sales and income which has made me see reasons to opt for an expansion.

I have accumulated a huge experience in the furniture business industry and I could be considered an expert and also a top marketer in this industry.JAMB Form

I started the Nnaji’s Furniture Homes in 1992 and since then, the company has consistent profit till date. Although there have been some ups and downs in the business, which is normal with all businesses, but the company has thrived greatly under my leadership.

The market for Furniture business depends on the housing market of the economy and we have lots of clients who have been satisfied with our products and have given good reviews about our products.

In recent years, the housing market has improved greatly and the projected growth in the next 10 years exceeds the numbers prior to recession. So at Nnaji’s furniture, we are doing our very best to ensure we meet up with the growing demand for furniture as well as the keeping up to date with the latest designs coming up, so we can always be ahead in the market.

I utilized cost-effective marketing strategies that resulted in an average of 4000 new orders every month from numerous private homeowners across the nation.

So far, I have invested about N20 million into the business, and my collateral consist of business assets with a fair market value of N45 million, while my personal assets is valued at N25 million.Npower Recruitment

I am disclosing my business plan which shows in details the reasons for the loan request. You can contact me on +2341647745362 if there are any questions you wish to ask.


Kind Regards,

Mr. Victor Nnaji

Chief Executive Officer5 Best Format Examples of Loan Application Letter in Nigeria

Nnaji’s Furniture Homes.

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Personal Loan Application Letter Format

If your loan application is for personal use, then use the format below. The case study here is customer service officer who is applying for loan to pay his children’s school fees.


Brian Dennis.

Customer Service Officer

Administration TeamWAEC Result




Mr Bruce Banner

The manager

Administration Department

BCV Co. Ltd.


Application for Loan to Pay Up Children’s School Fees


Dear Mr Bruce,How to Check MTN Bonus Balance

I am humbly request for a personal loan of N200,000 to enable me pay my children’s school fees. I was supposed to have paid the fees before now but due to some unplanned events came up, and was quite urgent, I couldn’t pay the fees.

This unplanned event led to the reduction of the money set aside for my children’s school fees and I was hoping to get a loan from you to enable me paid up their fees.

It is no news that I have been with the company for over five years now and I throughout my time a the company, I have shown utmost loyal and dedicated to the organization and so I believe you could consider my request for the loan and deem me worthy of getting the loan.

You can use your discretion to determine or suggest a repayment plan for me as an employee of this organization.

Thanks in anticipation as I hope to hear from you soon.


Kind regards,

Brian Dennis.How to Connect NIN to Glo SIM

Customer Service Officer

Administration Team

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