Loan Sanction Letter
✓ Last verified 14 Sep 2026
The short version
A sanction letter is the lender's formal, written confirmation of the approved loan amount, interest rate, tenure, and terms - the document to actually check carefully before signing, not just the fact that you were approved.
Issued once a loan application is approved, the sanction letter formally states the approved amount, interest rate (and whether it's fixed or floating), tenure, EMI, processing fee, and prepayment terms - the actual contractual details you're agreeing to, not just a congratulatory approval notice. See our full article on how to read a loan sanction letter for exactly what to check before signing.
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