Document background
The Mortgage Letter From Bank is a fundamental document in Indian real estate financing that initiates the formal lending relationship between a bank and a borrower. It is issued after the bank's initial assessment of the loan application and property evaluation, but before the final mortgage deed execution. This document is required whenever a property purchase or refinancing involves bank funding in India, serving as the bank's official commitment to provide the loan subject to specified conditions. The letter typically follows guidelines set by the Reserve Bank of India and complies with various Indian banking and property laws. It contains essential information such as the approved loan amount, interest rates, tenure, repayment schedule, security details, and specific conditions that must be met before loan disbursement. This document is crucial for both the borrower and the bank as it forms the foundation for the subsequent mortgage agreement and helps ensure transparency in the lending process.
