The Loan Letter is a versatile financial document used in Malta when a lender wishes to extend credit to a borrower in a format that is more approachable than a full loan agreement while maintaining legal enforceability. This document type is commonly used for both personal and business loans, particularly where the lending arrangement is straightforward and doesn't require the complexity of a full facility agreement. The Loan Letter must comply with Maltese law, particularly the Financial Institutions Act and Civil Code, and typically includes all essential loan terms, conditions, and obligations of both parties. It serves as both an offer of finance and, upon acceptance, a binding loan agreement, making it an efficient tool for documenting lending arrangements in the Maltese jurisdiction.

1. Date and Address Block: Formal letter heading including date and recipient's full details

2. Opening Salutation: Formal greeting to the recipient

3. Reference Line: Clear reference to the loan application or previous discussions

4. Loan Offer Summary: Brief statement confirming the loan offer and key terms

5. Principal Amount: Clear statement of the loan amount being offered

6. Interest Rate: Specification of the interest rate, whether fixed or variable, and calculation method

7. Term and Repayment: Duration of the loan and repayment schedule details

8. Purpose of Loan: Statement of the approved purpose for which the loan is being granted

9. Conditions Precedent: List of conditions that must be satisfied before the loan is disbursed

10. Representations: Key statements and confirmations required from the borrower

11. Key Undertakings: Essential obligations of the borrower during the loan term

12. Events of Default: Summary of circumstances that would constitute default

13. Acceptance Instructions: Clear instructions on how to accept the loan offer

14. Closing and Signature: Formal closing, including signature block for authorized signatory