Loan approval letters are written by bank loan officers to inform clients that their loan application has been approved. It then tells them what actions that they have to take to before loan proceeds will be released to their account (i.e. prepare documents such as bank statements that will be submitted). It also gives them a contact person that they can get in touch with if they have any questions or concerns that have to be addressed.

1. The tone of the letter can be more informal than regular business correspondence. Start the letter by informing the recipient what is being approved. If applicable, you can give the reasons for the approval.
2. The letter should then tell them the specific next steps they have to take before they can receive the loan money.
3. If there is a time line related to the release of the money, it should also be enumerated in the letter. And despite the relative informality of the letter, it should still be carefully proofread to avoid typographical errors.

Here is a sample of a loan approval letter.

SAMPLE APPROVAL LETTER

Dear (name of recipient),

We are happy to inform you that your application for a loan from our bank has been approved subject to the completion of the following formalities. Please submit the following documents to our office by (date).

A signed and dated copy of the enclosed agreement. The remaining copies are for your personal files.
Statements from your main account dating back three months and showing your current address. If these statements don’t reflect your salary being deposited into the account, however, please submit copies of your most recent pay slips. These are for reference purposes only and will be destroyed after loan proceeds have been released.

A completed, signed and dated copy of the enclosed standing order mandate. However, if you have chosen to repay your loan by direct debit from your current account with us, we will set it up and you don’t have to submit the mandate.

Once all these requirements have been submitted, the money can then be transferred to your named account. Until then, please do not enter into any transactions regarding the loan proceeds.

If you have any questions or concerns, please contact our Loan Consumer Services department at (telephone number). Operators are available from 9am to 5pm from Mondays to Fridays and from 9am to 2pm on Saturdays.
We look forward to receiving the documents and completing your loan.

Respectfully yours,

(Name of sender)
(Position)