Letter from Bank to Customer Allowing him Overdraft Facility

To,
(Name)
(Address)

Dear Sir,

Re: Your application dated ____________ Seeking overdraft facility

With reference to your above-quoted letter, I have the pleasure to inform you that the Board of Management of our bank has sanctioned, as requested by you, an overdraft limit of ____________ (Amount) for you against pledge of stocks with our Clearing Agents. The stocks shall be insured against theft and fire.

This limit carries an interest of percent over the bank rate, subject to a minimum of 10 percent. This facility is given to you on the full assurance and guarantee of ____________ (Name) and is for the purpose of buying office furniture and fixtures details of which you will have to furnish to the bank as and when you buy them.

Please send a draft of the guarantee policy from ____________ (Name) or request him to call at our bank on any working day to execute the guarantee so that we can proceed further in the matter as early as possible.

Thanking you and assuring you of our best services,

Yours faithfully,
(Your Name)
Dated _________