To,

The Branch Manager,

SBI –

Subject :- Request for Cancellation of Mudra Loan and Closure of Loan Account No.
______________________

Respected Sir,
I have been sanctioned a Mudra Loan of 8.5 Lacs for “_________________________”.
Sir, due to unforeseen circumstances the project cannot be implemented.

Reasons for cancellation of the loan :-

1. The power transformer installed in the village is of 16 Kw capacity and the
power requirement of the project is 12 Kw. Hence a grid transformer has to be
installed in the premises. The cost of the transformer is 2.5 lacs.
2. The present power supply condition of the area is 12 hrs per day. Hence the
generator will have to be operated 12 hrs per day. The production cycle of the
project is ______ days. The fuel consumption of the generator is 2.5 lts per hour.
2700 lts. of diesel will be required for one production cycle. The funds required
at present rate of Rs. 70 per litre will be 1.89 lacs.

Sir, the total funds input from my side would be :

Loan Margin 1.5 lacs

Transformer Installation 2.5 lacs
Fuel Expenses 1.89 lacs

Total 5.89 lacs

Sir, the fund requirement from my side of 5.89 lacs is roughly 70% of the loan amount and
impossible for me to arrange for it. Hence, Sir kindly cancel my loan. I am ready to pay any
type of penalty according to the bank’s policy.

Thanking You,
Yours Faithfully, Date : _______________________

(_________________)