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The Loan Confirmation Letter is a crucial document in Malta's banking and financial services sector, issued following the successful assessment of a loan application. It serves as the official communication from a financial institution to a borrower, confirming the approval of a loan and documenting its terms. This document is typically used after initial loan negotiations are complete and the lender has approved the facility, but before the final loan agreement is signed. The letter includes comprehensive details about the approved loan, including amount, interest rate, repayment schedule, security requirements, and any conditions precedent. Under Maltese law, while not the final loan agreement itself, this confirmation letter forms an important part of the loan documentation package and may be referenced in subsequent legal proceedings. It must comply with various Maltese regulations, including the Banking Act, Financial Institutions Act, and relevant consumer protection legislation where applicable.

1. Letter Header: Bank's letterhead, date, reference number, and addressee details

2. Salutation: Formal greeting to the borrower

3. Subject Line: Clear identification of the letter's purpose - Confirmation of Loan Approval

4. Reference to Application: Mention of the loan application details and date

5. Confirmation of Approval: Clear statement confirming the loan approval

6. Key Loan Terms: Essential details including loan amount, interest rate, term, and repayment schedule

7. Security and Collateral: Description of any security or collateral required

8. Conditions Precedent: List of any conditions that must be met before loan disbursement

9. Fee Structure: Details of all applicable fees and charges

10. Next Steps: Clear instructions on what the borrower needs to do to proceed

11. Closing: Standard letter closing with contact information for queries