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The Lender Approval Letter is a crucial document in South African credit transactions, issued following a successful credit application and approval process. It represents the formal communication of a financial institution's willingness to extend credit facilities to a borrower under specified terms and conditions. The document must comply with South African banking regulations, particularly the National Credit Act 34 of 2005, and includes essential information such as approved amounts, interest rates, repayment terms, and conditions precedent. This letter serves as a preliminary step before the final credit agreement and is used in various lending scenarios, from personal loans to complex corporate credit facilities. It provides the borrower with written confirmation of the credit approval and outlines the next steps required to proceed with the facility.

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/recipient

3. Subject Line: Clear indication that this is a credit/loan approval letter with reference to the application

4. Application Reference: Reference to the loan application details including date of application and type of credit facility

5. Approval Confirmation: Clear statement of approval and the basic terms of the credit facility being offered

6. Key Terms: Principal amount, interest rate, term, and repayment schedule

7. Conditions Precedent: List of conditions that must be met before the facility becomes available

8. Security Requirements: Details of any required security or collateral

9. Validity Period: Period for which the approval remains valid

10. Next Steps: Clear instructions on how to proceed with accepting the offer

11. Contact Information: Details of the responsible loan officer or department for follow-up

12. Signature Block: Authorized signatory details and signature