Loan Sanction Request Letter

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Loan Sanction Request Letter

A Loan Sanction Request Letter is a formal application letter addressed to a bank or financial institution requesting sanction of a loan.

  • It introduces the borrower and the purpose of the loan.
  • It is usually supported by financial and compliance documents.
  • Can be used for personal loans, business loans, housing loans, vehicle loans, or working capital loans.

In simple words: It is a covering letter/application that formally requests the bank to sanction a loan.

  • Personal Loan Request Letter For individual loans (medical, education, marriage, etc.).
  • Business/Working Capital Loan Request Letter For MSMEs, proprietorships, companies seeking business finance. Often attached with CMA Data and statutory compliance documents.
  • Home Loan/Mortgage Loan Request Letter Specifically for property purchase or mortgage against property.
  • Vehicle Loan Request Letter For purchase of personal/commercial vehicles.
  • Project Loan Request Letter (DPR-based) For new projects/expansions with a Detailed Project Report (DPR)

For Individuals (Personal / Home / Vehicle Loan)

  • PAN, Aadhaar, Voter ID, Passport (KYC).
  • Salary slips / Income proof / IT returns.
  • Bank statements (last 6-12 months).
  • Property papers (for home/mortgage loans).

For Businesses (MSME / Corporate Loans)

  • PAN & GST registration.
  • Udyam/MSME certificate.
  • Audited Balance Sheet & P&L (last 2-3 years).
  • Income Tax Returns (business & promoters).
  • Bank statements (last 12 months).
  • CMA Data (financial projections).
  • DPR (for project loans).
  • Statutory compliance docs (GST returns, PF/ESI, etc.).
  • Board Resolution (for company loans).

  • Individuals - Must be 18+ years old, with valid KYC & income proof.
  • MSMEs/Businesses - Must be registered (GST, PAN, Udyam, etc.) and have financial track record.
  • Companies - Must provide statutory compliance, audited financials, and board resolution (for loans).
  • All Applicants - Should have a decent CIBIL score (650-700+) and repayment capacity.

  • Formal Communication Presents borrower's intent professionally, making it easier for the banker to process.
  • First Impression for Loan Approval A clear, well-drafted request builds trust and confidence.
  • Clarifies Purpose of Loan Helps bank understand whether loan is for business, property, personal, or project needs.
  • Supports Faster Sanction When attached with proper documents, it speeds up the loan sanction process.
  • Mandatory in Business Loans Especially in MSME and project finance, banks do not proceed without a formal request letter.
 
     
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