Approve a Loan • Letter Templates and Guide

Guide

1Inform the reader that the loan has been approved.
2Discuss repayment terms.
3Offer assistance or a friendly comment, if you wish.

Tips

This letter may be friendly or formal, but should state the details of the transaction, including the amount, the interest to be paid, and the repayment requirements. Remember that the law treats consumer and commercial credit differently. Make sure any credit approval complies with applicable state and federal laws. Consumer credit, in particular, requires a variety of disclosures that are beyond the scope of this program. In cases where such disclosures are required, the letter you write would be only a cover letter discussing the general terms of the loan and referring to attached disclosure forms.

Example Letter #1

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I am happy to inform you that Doe International has approved your loan application for $33,000 with interest to be paid at a 9.8 Annual Percentage Rate. As indicated in earlier correspondence, we expect the loan to be paid in full within seven years. An amortization schedule is enclosed. Please call me sometime during the week so that we can draw up the final papers.

Example Letter #2

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We have approved your request for a home equity loan in the amount of $10,000. The term of the loan is fifteen years. The interest rate on the unpaid balance will be calculated according to our standard formula and will start at 9%. Your first payment of $210 is due on July 25. Thank you for choosing Doe Savings and Loan. Please call us at 555-5555 if we can serve you further.

Example Letter #3

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Your application went through underwriting successfully, and we will extend to you the $888 loan immediately. Please come to my office to review the terms and sign the promissory note. The terms are as outlined on the application. In brief, the first payment of $50 is due thirty days after disbursement of the principal. Subsequent payments are due on the first of every month thereafter. Our 10.9% interest rate is good for the entire term of the loan.

Example Letter #4

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We are pleased to approve your home equity loan application. The loan amount is $50,000, the term is 30 years, and the annual interest rate is 8%. Enclosed is a disclosure form that outlines the terms of the loan. If you have any questions, please call our local branch and a representative will help you.

Example Letter #5

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I am pleased to inform you that we have approved your loan. As we discussed, the loan is for five years at an Annual Percentage Rate (APR) of 7%. Your first payment of $200 is due on May 31. The attached consumer loan forms disclose the terms of your loan in more detail. You should refer to them for more specific information. If you have further questions or needs, please give me a call.

2

Discuss repayment terms.

Example Sentences

Example Phrases

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