Loan Approval Letter, Sample & Format

Loan Approval Letter

Introduction

An Approval Letter is an agreement or consent in the written form by a regulatory body or an organization in response to a specified request made by a person for an action or activity. A Loan Approval Letter is one such type of approval letter which is drawn up by a bank or a financial institution to inform its client that the loan request made by him/her has been approved. The letter should be written immediately after the loan has been endorsed by the organization.

Since this is a letter drafted by an institution, it should be written very professionally, and any grammatical or spelling mistake should be avoided. The letter is a written proof which states that the receiver can proceed with the activity for which the loan has been requested, without any objection on the part of the bank or institution granting the loan. The letter should validate the amount of loan that has been approved, the interest rate applicable, the due date of the first payment and terms and conditions regarding the loan. The client has a choice to accept or decline the loan offered.

Sample Letter

The following is a sample of a loan approval letter.

From,

Ryder Wolfe

Loans Officer,

Blue Whale Financing Corporation

45 Marlin Avenue,

Kialla, NSW 2583

DD/MM/YYYY

To,

Savannah Jennings

Greenland Enterprise

28 Woodlands Avenue,

Kings Park, NSW 2148

Subject: Approval of Loan Request

Dear Mrs. Savannah Jennings,

I am writing this letter to you in response to your recent request, for a short-term loan of $30,000 to help meet your current tight cash flow. Hence, I am happy to inform you that Blue Whale Financing Corporation has approved your loan application for the amount of $30,000.

After studying your business proposal carefully, the company’s Loan Committee has come to the conclusion that your plan is sound and profitable if all the terms and conditions are adhered to. Hence, Blue Whale Financing Corporation approves of your requested loan of $30,000. The interest on the loan is to be paid at a 9.8 Annual Percentage Rate. As has been discussed earlier, the company expects the loan to be paid in full within ten years. Your first payment of $650 is due on February 25, 2017. Also, you need to provide the necessary documents of which you had been informed earlier in your meeting with us.

We hope that the attached terms and conditions related to this loan are favorable for your acceptance. Please self-attest and return the forms as soon as possible for a quick processing of the loan before the amount is released to you. For clarifications of any kind, you can reach me at 743645545.

Thanking you.

Yours Sincerely,

Ryder Wolfe

Loans Officer,

Blue Whale Financing Corporation

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