Dear,
I am writing to propose a settlement regarding the outstanding family loan dated for the amount of . Due to personal and financial circumstances, I am unable to repay the full loan amount as originally agreed.
I would like to offer a lump-sum payment of as a full and final settlement of this debt. Upon acceptance and receipt of this payment, I kindly request a formal written confirmation that the debt has been settled in full, and no further amount remains due.
If you agree to this settlement, please sign below as an acknowledgment. I am prepared to make the payment by upon your acceptance.
Thank you for your consideration.
Sincerely,