A Loan Repayment Confirmation Letter is issued when a borrower has successfully completed all payment obligations under a loan agreement. This document serves as crucial evidence of debt discharge and is commonly used in German banking and financial transactions. It should be issued promptly after the final payment is received and processed. The letter provides legal protection for both parties: for borrowers as proof that they have fulfilled all obligations, and for lenders as documentation of the formal conclusion of the lending relationship. The document must comply with German legal requirements, particularly those set out in the German Civil Code (BGB) regarding debt acknowledgment and discharge of obligations. It typically includes reference to the original loan agreement, confirmation of the final payment, release of any securities, and formal discharge of the borrower's obligations.

1. Letter Header: Sender's details, recipient's details, date, and reference numbers

2. Subject Line: Clear identification of the document as a Loan Repayment Confirmation Letter with reference to the original loan agreement

3. Loan Details: Original loan amount, date of loan agreement, any reference or contract numbers

4. Confirmation of Repayment: Clear statement confirming full repayment, date of final payment, total amount repaid

5. Discharge Statement: Formal confirmation that the borrower has fulfilled all obligations under the loan agreement and is released from further obligations

6. Closing: Formal closing, signature block for authorized representative of the lender