Letter to Bank Presenting a Guarantor for 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 cover letter format for this purpose may be useful for you.

TEMPLATE

Date: ________

From

(Name of the Account-holder)

(Full Address)

Mob. ________

To

The Branch Manager

________ Bank

________ Branch

(Address)

Sub.: Guarantor for the Overdraft (OD) facility.

Dear Sir/Madam,

I am maintaining a current account bearing number ________ in your bank for business purposes for my establishment i.e. (Name of the Business Establishment).

With reference to my letter dated ________, requesting for an overdraft facility for Rs. ________, I thank you for the in-principle approval for the same (ref: your letter dated ________). As a pre-condition, I understand that 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. ________.

I am enclosing herewith a letter of guarantee to the tune of Rs. ________ duly signed and stamped by Mr./Ms. ________, who is holding a current account bearing number ________ in your bank at ________ branch. He/She has informed me that his/her account carries sufficient balance at all times to meet this much amount. Hence, I believe his/her 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. ________ as requested in my earlier communication.

Kindly do the needful and oblige.

Thanking you,

Yours faithfully,

   (Signature)

(Name of the Account-holder)

Encl.: A/a