What Is Letter Of Undertaking For Loan

Sample template example of letter of undertaking from company director for bank loan in word doc letter of undertaking to the branc.

What is letter of undertaking for loan. Dear senior there is one worker who is taking personal loan from bank and he wants undertaking letter form company there is one clause that if he will not pay the emi loan then company will deduct the amount from his salary. A letter of undertaking lou is a bank guarantee given by one bank to another bank on behalf of the customer for repayment of the loan. The letters should be written in formal business style and if there are any forms required by the bank or employer they should be included with the letter. It should be sent by certified mail and a copy kept by the sender.

A letter of undertaking or lou is a document issued by a bank to a person or a firm. Below is a sample salary loan request letter written to an employer and a sample letter written to a bank. What factors must be observed if a german. To refund the loan sum in the event the memorandum of transfer in favour of the purchaser is not registered for any reason whatsoever and thereby causing the non registration of the charge in your favour.

Mostly the lou is used when the person imports anything from a person in another country. This lou is generally used for international transactions and is issued keeping in mind the credit history of the party concerned. The party can then avail buyer. To date number 5 letter of undertaking and subcon tractor s letter of undertaking has not had any practical relevance.

To present the documents for registration at the relevant land office immediately and to ensure that the bank s interest is protected at all times.