A loan is a form of debt incurred by an individual or other entity. The lender—usually a corporation, financial institution, or government—advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions. Loan repayment is the act of settling an amount borrowed from a lender along with the applicable interest amount. Generally, the repayment method includes a scheduled process (called loan repayment schedule) in the form of equated monthly instalments or EMIs. Such instalments includes both the principal and interest components, which need to be paid within a fixed tenor. This Loan Repayment Demand Letter is to be used by the lender when the borrower has defaulted under a loan agreement. It gives a notice of default to the borrower and requires him to pay the amount outstanding under the loan agreement or face legal proceedings without further notice. In the event of default the Lender will send the borrower a Loan Repayment Demand Letter requiring the borrower to make immediate payment of all amounts due under the loan agreement.

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