Credit Approval Letter

Banks are to keep your money safe. They serve multiple other purposes too. Everything in banks works according to some rules and regulations. One of those rules is that banks allow individuals a specific amount to be kept in banks. If the credit is to be exceeded, a request letter should be written prior to that. The bank approves the letter and the client can then increase his amount in his account.

Exceeding a certain credit limit without the bank’s permission is illegal and, in this case, the bank either charges the customer freezes the account or takes other actions. A customer also has to pay the bank on a monthly basis for the bank’s services according to the credit limit of his account.

Sample Letters

This letter is to inform you that your credit application has been approved. You can now enjoy the benefit of [enter credit limit]. For this, the monthly billing amount has also been changed. You’ll now have to pay [enter amount] as the monthly bill. Please find the enclosed document to know about the credit terms and conditions.

For any queries, feel free to contact us at [CONTACT].



Subject: Credit approval for [X]

Dear Henry,

I am pleased to inform you that your application for credit has been approved by our company. The interest rate will be 9.3% annually and it has been calculated as per our developed formula. You must remember that credit is being issued based on the information you submitted to us. As discussed earlier, this credit is to be paid within five years with the following terms and conditions:

  1. Company reserves the right to change terms and conditions any time and without any notice.
  2. As described in your monthly statement, amount related to invoice of one month must be paid within 30 days of issuance.
  3. Interest rate of 1.5% will be applicable in case of overdue amount.
  4. Company reserves the right to initiate legal action if you fail to pay the credit in full.

Above mentioned terms and conditions are also mentioned on the affidavit enclosed with this letter. As per conditions, your first installment of 200US$ is due within 30 days of principal amount disbursement. Thereafter, the rest of the monthly payments must be paid on the 1st of every month.

A file outlining detailed rules and regulations of credit is being sent to you through email. You are required to schedule a meeting with us as soon as you receive this letter. If you have any questions regarding this credit, call our branch representative. He will answer your all queries.

We are happy doing business with you and wish you all the best.



Size: 22 KB Word .doc File 2003 & later



Subject: [X] Credit approval

Dear Henry,

In response to your request for credit, we are glad to inform you that your application has been approved for a credit amount of 30,000 US$. Remember, the company is issuing you this amount because you want to re-establish your business. Our company representative will visit you for verification purposes.

It took us only two days to approve your credit request because it was accompanied by all required documents. Our finance officer has read and analyzed your business plan thoroughly and found it complete in all respect. As per our agreement you need to pay a 10% interest rate per annum on the total credit amount. I am sure it is feasible for you. We have used an internationally recognized formula to calculate this interest rate.

As we discussed in our previous meeting, you will have to pay this credit within 10 years. It must also be noted that the percentage of interest may fluctuate each year depending upon government policies. Initially, an amount of 10,000 US$ is being credited to your account by 25th July. It will be obligatory for you to pay the first installment within 30 days. Subsequent installments are required to be paid by the 1st of every month.

Enclosed with this letter is an affidavit containing all the related terms and conditions. You are required to sign it up if you agree. In case of ambiguity, call our customer services representative or visit our branch personally.  

Andrew Murray

Size: 22 KB Word .doc File 2003 & later



I am always available to answer your questions. For any queries or suggestions please contact or write to me at the email address given at the Contact Us page. I will be very happy to see your response to improve my effort. Thank you! *Please write to me at Contact Us for anything for which you were here on my website and could not find it. Your required stuff will be updated within 24 hours at maximum.

You may also like...