Loan Agreement Letter, Sample & Format
The word ‘Agreement’ means, a legal or a mutual understanding between two or more parties. An agreement letter between two parties can be a formal letter that states the terms and conditions which both involved parties must adhere to after discussion and agreement. The agreement between the parties regarding loan includes the amount of the loan, the charges and interest rates and the date of repayment of the loan.
A loan agreement letter is usually given by the financial agency to the potential client for a loan that was applied for by the customer. The financial company writes in response to the loan request and this case, the loan request is accepted by the bank. The terms and conditions are stated clearly in this loan agreement letter which may have a more formal enclosure. The borrower and the lender promise to lend and repay the loan as per the rules abide by the law and as per the conditions of the undertaking financial institution.
The following is the sample letter For Loan Agreement Letter.
Gold Coast National Bank,
1 Thomas Lane,
Reservoir North Vic 3073.
29 Sunnyside Road,
Subject: Regarding loan agreement.
With regards to your loan application number AMM/259/2011 amounting $20,000( Twenty thousand dollars) to renovate your office, the bank committee has met and made a detailed study of your proposal.
Looking at the ailing economy today, the bank loans board is not entirely confident that your business will be sustainable as the economy parameter may drop further. Nevertheless, the investment committee has studied your expansion proposal and reviewed your business standing thoroughly; we felt that you have kept your business accounts well and we agree that there is more potentiality in your business with some expansion plans, as per your suggestions.
Hence, the bank’s loan committee is agreeable to provide you the total sum of loan amounting $20,000 with slightly revised terms and conditions as per the law. As such, please consider the adjusted terms and conditions of this loan carefully which is attached below. If you are agreeable to the changes listed, you are most welcome to come in and finalize the loan procedure.
If you any queries or questions bubbling in your relates to this loan agreement procedure and its terms & conditions, please don’t hesitate to contact us at 91-407882221. We will be happy assisting you.
Gold Coast National Bank.