Applications for a loan may take a long time for approval. A bank needs to carry out verifications and perform other important processes before sanctioning the loan. However, once a loan has been approved, the bank informs its client along with discussing the relevant terms and conditions. For this purpose, the bank writes a letter to the client including the following information.
- Deliver the Approval News
with Pleasure
Begin the letter by informing the client that his loan has been approved. Since it is a happy piece of news for the reader, express your own pleasure as well. It is a good way of building your relationship with your client by showing politeness.
- Provide the Loan Details
Mention the specific details about the loan including the principal amount, interest rate and payback installments. Moreover, also provide the exact dates when the payments need to be made by the client.
- Discuss Terms and Conditions
Summarize important terms and conditions related to the sanction. Details are usually enclosed in the form of a separate document with the letter. You should also discuss your company’s amortization policy in order to make the client understand the legal rules about paying the loan back.
- Request for Compliance with
the Rules
Although it is an understood fact that legal rules are binding for the involved parties in case of all types of agreements, you should still emphasize the importance of following the bank’s policies. State what action you are authorized to take in case the client breaks any rules. For instance, in case of non-payment of the monthly installments, inform the client that he will have to pay a fine or face legal action.
- Offer Further Assistance
Explain how or when your client may contact you in case, he needs any assistance regarding this matter.
Sample Letter
We are delighted to inform you that your loan application has been approved by our bank. In accordance with your application, the bank will grant you a sum of $500,000/- as a loan at an annual interest rate of X%.
According to our terms and conditions, it is mandatory for you to pay the first installment of your loan amounting to $15,000/- within 30 days after the bank releases the principal amount to your account. Thereafter, you are supposed to make your monthly payment by the 25th of every month. Kindly go through the enclosed literature discussing the details of our terms and conditions and amortization rules. In case you fail to abide by these rules, the bank will be authorized to take legal action.
Kindly fill out and sign the attached forms if you agree to our terms and conditions. Submit the forms to the bank at your earliest possible so that we can proceed with your loan without any further delay.
Our customer care service is available between 8 am and 6 pm to help you with your queries and issues. Do let us know in case you require assistance.
