Document background
The Payoff Letter From Lender is a crucial document in Qatar's lending landscape, used when a borrower intends to fully repay a loan facility, whether at maturity or through early repayment. This document type is essential in Qatar's dual banking system, which accommodates both conventional and Islamic banking practices, and must comply with Qatar Central Bank regulations and the Civil Code requirements. The letter provides certainty to all parties about the final settlement amount, payment mechanics, and security release procedures. It typically becomes necessary during refinancing, asset sales, corporate restructuring, or when a borrower has funds to clear their debt obligations. The Payoff Letter includes critical information such as the payoff amount calculation, validity period, per diem interest/profit rates, and specific instructions for fund transfer, all while ensuring compliance with Qatar's legal framework.
