Building BusinessServices

Section 44

Loan application cover letter to a bank

Use it on top of your loan application form and documents when you apply to a bank for a business loan.

Your details

Your document

Template for general guidance; not legal advice. Check stamp duty and registration rules in your state. Your name Your role in the business, Business name Business address Phone and email Date: Date To, The Branch Manager Bank name Branch name and address Subject: Application for a Type of loan of ₹Loan amount (₹) for Business name Dear Sir/Madam, I am applying for a Type of loan of ₹Loan amount (₹) for my business, Business name. I request that the application be considered under Scheme, if any. About the business - Type of entity: Type of business entity - Activity: What the business does - In business for: Years in business - Turnover in the last financial year: ₹Turnover last financial year (₹) - Udyam registration number: Udyam registration number - GSTIN: GSTIN (if registered) About the loan - Amount requested: ₹Loan amount (₹) - Purpose: Purpose of the loan - My own contribution: ₹Your own contribution (₹) - Security offered: Security offered - Repayment period requested: Repayment period requested (months) months - Source of repayment: How you will repay Documents enclosed: Documents enclosed I confirm that the information given in this letter and the enclosed documents is true and complete to the best of my knowledge. I will provide any further information or documents the bank needs. I request you to kindly acknowledge receipt of this application and let me know if anything more is needed. Thank you. Yours faithfully, ______________________ Your name Your role in the business, Business name

Know before you sign

  • The Reserve Bank of India's Master Direction on lending to MSMEs (updated 9 February 2026) tells banks not to take collateral security for loans up to ₹20 lakh to micro and small enterprises. Ask the branch how this applies to your loan.
  • Micro businesses can apply under the Pradhan Mantri MUDRA Yojana. MUDRA's categories run up to ₹20 lakh, and the top category (Tarun Plus) is only for borrowers who have repaid an earlier Tarun loan.
  • Register on the Udyam portal before you apply and quote the number. Banks use it to check that you are a micro, small or medium enterprise.
  • Hand in the letter with the bank's own application form, and keep a copy with the branch's stamp or signed acknowledgement and the date.
  • Never pay an agent to 'get the loan passed'. Deal only with the bank branch or the bank's official online portal.
Sources (3)
  1. Master Direction: Lending to Micro, Small and Medium Enterprises (MSME) Sector (updated as on 9 Feb 2026) · 2026
  2. MUDRA: Frequently asked questions · 2026
  3. Udyam Registration portal · 2026

← All templates