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A Letter Of Intent Bank Loan is commonly used in Austrian banking practice as a preliminary step in the loan application process. It serves as a formal indication of a bank's willingness to provide financing, subject to certain conditions and further due diligence. This document typically follows initial loan discussions and credit assessment, but precedes the final loan agreement. It outlines key commercial terms such as proposed loan amount, interest rate, tenure, and main conditions precedent. While non-binding in nature, it provides a framework for further negotiation and helps both parties understand the intended structure of the final loan agreement. Under Austrian law, particularly considering the Austrian Banking Act (BWG) and financial regulations, this document must be carefully drafted to avoid being construed as a binding commitment while still providing sufficient detail for the transaction to progress.

1. Letter Header: Bank's letterhead, date, and reference number

2. Addressee Details: Full name and address of the potential borrower

3. Subject Line: Clear indication that this is a Letter of Intent for a bank loan

4. Introduction: Reference to loan application and any previous discussions

5. Loan Amount and Purpose: Proposed principal amount and intended use of the loan

6. Key Terms: Essential loan conditions including interest rate, term, and repayment structure

7. Main Conditions Precedent: Primary conditions that must be met before loan agreement execution

8. Validity Period: Time frame during which the Letter of Intent remains valid

9. Non-Binding Nature: Clear statement that this is not a binding commitment to lend

10. Confidentiality: Requirements regarding the confidential treatment of the letter and its terms

11. Closing: Signature block for authorized bank representative