Glossary
Sanction Letter
A sanction letter is the lender's written confirmation that a loan has been approved, with the amount, the interest rate, the tenure, fees and conditions. It is usually valid for a limited time. Disbursal follows once you accept and complete the conditions and sign the loan agreement. Read the lette
Related terms: Loan Agreement, Disbursal, Key Fact Statement (KFS).
Published 12 Nov 2026
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