SEARCH YOUR QUERY HERE

Letter to bank presenting a Guarantor for the Overdraft (OD) facility

In case you are not able to provide sufficient mortgage or security against the amount of Overdraft facility requested by you, then the bank may ask for a Guarantor for the sanctioned amount.

If you are able to secure a guarantor for this purpose, then you will have to communicate the same to the bank. The following covering letter format for this purpose may be useful for you.



FORMAT
Date: ..................

To
The Branch Manager
..............Bank
............Branch
(Address)

From
(Name of the Account-holder)
(Address)
(Contact No.)

  Sub.: Guarantor for the Overdraft (OD) facility
  Ref: Current account number: ......................

Dear Sir/Madam,

I am having a current account in your bank at .......branch, bearing account number ....................., which I am maintaining for my business - (Name of the Business establishment).

With reference to my letter dated .............., requesting for an overdraft facility for Rs. ... lakh, I thank you for the in-principle approval for the same (ref: your letter dated ............). As a pre-condition, I understand I have to provide a letter of guarantee from an existing customer of your bank for a sum to the extent of at least Rs. ...lakh.



I am hereby enclosing herewith a letter of guarantee, to the tune of Rs. ...lakh, duly signed and stamped by Mr. ................., who is holding a current account bearing number ..................... in your bank at .........branch. He has informed me that his account carry sufficient balance at all times to meet this much amount, hence, I believe his credit worthiness for this purpose should be sufficiently verifiable.

I trust this should serve the purpose and I, therefore, request your goodself to kindly sanction an overdraft facility to the tune of Rs. ...lakh as requested in the my earlier communication.

Kindly do the needful.

Thanking you!

Yours faithfully,

  (sign)

(Name of the Account-holder)

Encl: A/a

Comments

  1. Rajendra Gokhale6/17/2018

    I could not find a proper format of this letter in any other website. I tried looking for in several places. I think this is properly drafted. I am going to use this to write to my bank. Thank you, sir / madam.

    ReplyDelete
  2. Renuka Balla8/08/2018

    Thanks a lot for the format of the letter. It was hard to write for me. But now I have learnt it.

    ReplyDelete
  3. Laxman Ghosh9/20/2018

    Well, this was quite helpful. Thanks a ton!

    ReplyDelete
  4. Anonymous10/10/2018

    Thank you. Very useful.

    ReplyDelete

Post a Comment

Leave your comments and queries here. We will try to get back to you.