Document background
The Lender Approval Letter is a crucial document in the Swiss lending process, serving as the formal communication of a financial institution's decision to extend credit to a borrower. This document is typically issued after the lender's internal credit assessment and approval processes are complete, but before the final loan documentation is executed. The letter outlines the approved loan amount, interest rate, tenure, repayment structure, and any specific conditions that must be met before loan disbursement. Under Swiss banking regulations, particularly the Swiss Banking Act and related FINMA guidelines, the approval letter must contain certain mandatory elements and disclosures. The document is designed to provide clarity on the terms of the approved facility while protecting both the lender's and borrower's interests in accordance with Swiss law.
