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The Letter of Intent for Loan Application is a crucial preliminary document in the Nigerian lending landscape, serving as the initial formal communication between a prospective borrower and a financial institution. This document is typically used when an individual or business seeks to initiate the loan application process with a bank or financial institution, but before proceeding with a full loan application and its associated costs and documentation requirements. The letter should outline key information such as the intended loan amount, purpose, proposed repayment terms, and basic information about the borrower's financial position. While not a binding loan agreement, it helps establish the framework for subsequent negotiations and due diligence processes. Under Nigerian banking practices, this document often serves as a reference point for further discussions and may be required by some institutions before they commit resources to processing a full loan application.

1. Letter Header: Contains sender's details, date, and recipient's details including bank name and address

2. Subject Line: Clear indication that this is a Letter of Intent for Loan Application

3. Introduction: Brief introduction of the applicant/company and purpose of the letter

4. Loan Details: Specific amount being requested, intended purpose, and proposed repayment period

5. Business/Individual Profile: Brief overview of business operations or individual's professional status and income sources

6. Financial Position: Summary of current financial status, including existing obligations and assets

7. Proposed Security/Collateral: Description of assets or guarantees offered as security for the loan

8. Declaration: Statement confirming the truth of information provided and understanding that this is not a loan agreement

9. Closing: Standard letter closing with signature block and contact information