Credit Approval Letters

A credit approval letter is an official letter which is approved by the bank to notify the client or customer that their application for certain credit term has been approved. The letter also contains the terms and conditions of the limit of credit and also about the rate of interest which is fixed on the credit.

The contents which should be included in the credit approval letter are the name of the client, his address, his contact number, email address, account number, and other relevant details.

The correct date of approval should also be mentioned in the letter and describe when an account can be activated. You can also grant the customer about the approval of credit.  You can use good proofreading software to make sure that your credit approval letter is communicative and professional.

A credit approval letter is usually written in reply to a request of the client or customer. Always use a courteous tone in your letter and make sure that you have included all the details and information in your letter.

The letter should always be straight forward and business-oriented. The writing style of the letter should be relaxed and friendly. Mention the reasons for approval.

If any further action is required by the client then you can also state that clearly in your letter. With the help of a credit approval letter, you are giving a customer permission to open his account in your bank or credit company.

Preview and detail of templates

Credit approval letter

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1- Customer credit approval letter

Dear [Name of Client],

I would like to inform you that your application for the credit account has been approved. The details of your account are as follows:

[Credit Account Number]

[Name of Client]

[Credit Limit]

Please do not disclose your account details to strangers.

The payments for the credit are to be made on [Date]. You will find the credit card attached to this letter. For any queries contact us on the provided contact details, or you can visit our closest bank branch. Thank you for choosing our services.


2- Loan approval letter

Dear [Name of Client],

This letter is to inform you that after reviewing your documents, your application for the loan has been approved. The loan amount approved is [Figure]. According to the loan agreement, you are required to pay the loan off in by [Year]. Failure to do so will cause the bank to take you to court where you may have to pay a hefty fine, over the loan amount.

For further details you can visit your nearest bank branch.

We are happy to inform you that your request for the loan has been approved by the bank. According to your application, you requested a [Short/Long] term of [Figure, for example, $20,000/-]. The bank has decided to assist you in your time of need by providing you a loan for the $20,000/-.

After carefully analyzing your application and proposal, our bank was satisfied with the plans. We hope you will achieve your goals.

The interest rate that will apply on your loan has been calculated with the help of the formula used for calculating the interest rate at [eg. 9%]. The rate of interest that will apply on your loan will be [eg. 10%]. However, the interest rate depends on the payment plan for the loan.

As agreed upon during our meeting, you are liable to pay back the loan within [eg. 7] years. You are required to pay the first payment on [Date]. After this, you will have to make regular payments on the 1st of each month.

You are advised to review the loan agreement and the banks terms and conditions, at the bank. The bank will then provide you with a promissory document. 

Kindly thoroughly read through the documents attached to this letter as they will be advantageous for you. The processing of the loan will be done after we have received a positive reply. Therefore, we would like to ask you to reply by [Date]. If no response is received we will have to move on to another client in need. For queries, please contact me on [Email] or [X]. You can also visit your home town branch.

3- Mortgage approval letter

Dear [Name of Client],

We gladly inform you that your request for a mortgage has been approved. The details of the mortgage are as follows:

Purchase Price: [X]

Loan Amount: [X]

Loan Type: [X]

Property type: [X]

We require you to submit your documents so we can start the process for the loan. The bank also requests the submission of information regarding the applicant’s finances, income, and credit. The required documents list regarding the property has been attached to this letter.

It is advised to you keep your future financial position as strong your current financial position. After we receive the confirmation from you, we will initiate the document processing for the mortgage loan.

If you have any queries, please contact us on [X] or [X].


4- Grant approval letter

Dear [Name of Client],

It is with great pleasure that I inform you, your proposal for [Project Name eg. financing a school] has been accepted by [Name of Organization]. The [Name of Organization] will provide [Figure eg. $30,000/-]. This grant amount will be directly transferred to the account of [Campaign Name]. We hope this grant will be effectively used for a positive cause.

5- Grant approval for credit

Dear [Name of Client],

I would like to inform you that your request for the loan has been approved by our institute. After thoroughly reviewing your applications, the process for the loan has been initiated.

You will find a hard copy of the terms and conditions attached to this letter. A copy has also been sent to you on your provided email address. Kindly contact us as soon as possible so we can schedule a meeting for you and our finance officer.

If you have any queries, you can write to us at [TEXT].

See Also

Extended Leave Request Approval Letter

Extended Leave Request Approval Letter

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