Document background
The Bank Loan Cancellation Letter is a crucial document in Singapore's banking system, used when a borrower wishes to formally terminate their loan agreement before the original maturity date. This document is typically required when a loan is being fully repaid ahead of schedule, when refinancing with another institution, or when canceling an approved but unused loan facility. It must comply with the Monetary Authority of Singapore's guidelines and local banking regulations, including proper documentation of the cancellation, confirmation of settlement, and clear communication of termination terms. The letter serves as legal evidence of the loan's termination and helps protect both parties' interests.
