Document background
The Lender Approval Letter is a crucial document in the loan process under English and Welsh jurisdiction. It represents the formal communication of a lender's willingness to extend credit following their assessment of the borrower's application. The letter typically follows internal credit approval processes and precedes the final loan agreement. It contains essential information about the approved facility, including amount, purpose, interest rate, fees, and any security requirements. The document serves multiple purposes: it provides the borrower with written confirmation of the lending decision, outlines key commercial terms, and establishes conditions that must be met before the loan can be drawn. While not typically a binding loan agreement itself, the Lender Approval Letter forms the basis for the subsequent loan documentation.
