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The Confirmation Letter For Loan is a critical document in Nigerian banking practice that follows the successful approval of a loan application. It serves as the official communication from a financial institution to a borrower, confirming that their loan request has been approved and documenting the agreed terms. This document is required under Nigerian banking regulations and must comply with the Banks and Other Financial Institutions Act (BOFIA) 2020 and Central Bank of Nigeria guidelines. The letter typically follows internal credit approval processes and precedes the full loan agreement, providing key information about the approved facility including amount, tenure, interest rate, repayment terms, and any conditions precedent to disbursement. It forms part of the formal loan documentation and can be used as evidence of the lending arrangement in legal proceedings.

1. Letter Header and Date: Official letterhead of the lending institution, date, and reference number

2. Recipient Details: Full name and address of the borrower

3. Subject Line: Clear indication that this is a loan confirmation letter with reference to any application or agreement numbers

4. Loan Approval Confirmation: Clear statement confirming the approval of the loan

5. Loan Terms Summary: Key details including loan amount, interest rate, tenure, and repayment schedule

6. Disbursement Information: Details of how and when the loan will be disbursed

7. Repayment Terms: Specific details about repayment method, schedule, and account information

8. Contact Information: Details of whom to contact for queries or further information

9. Signature Block: Authorized signatory details and space for signature