Document background
The Lender Approval Letter is a critical document in the Dutch lending process that bridges the gap between a loan application and the final loan agreement. It is used when a financial institution has completed its credit assessment and is prepared to extend credit to a borrower, subject to specific terms and conditions. The document serves multiple purposes: it formally communicates the lending decision, outlines the approved terms, specifies any conditions that must be met before the loan can be drawn, and provides a framework for the subsequent loan documentation. Under Dutch law, particularly the Financial Supervision Act and the Civil Code, the Lender Approval Letter must contain certain mandatory information and disclosures, especially when dealing with consumer credit. The document is typically issued following internal credit committee approval and precedes the execution of full loan documentation.
