A Recommendation Letter For Loan Approval is an essential document in the Malaysian financial services landscape, commonly used to support various types of loan applications including personal, business, and property loans. The document is typically requested by banking institutions as part of their due diligence process and risk assessment procedures. It should comply with Malaysian banking regulations, including the Financial Services Act 2013 and Bank Negara Malaysia guidelines on responsible financing. The letter is written by a professional who can credibly attest to the applicant's financial stability, character, and ability to meet loan obligations. It includes key information such as the relationship between the recommender and applicant, assessment of financial capability, employment stability, and character reference. The document plays a crucial role in the loan approval process by providing third-party verification of the applicant's creditworthiness.

1. Letter Header: Official letterhead including recommender's details, date, and reference number

2. Recipient Details: Full name and address of the banking institution and specific department/officer

3. Subject Line: Clear indication that this is a loan recommendation letter for [Applicant Name]

4. Introduction: Establishes the recommender's relationship with the applicant and purpose of the letter

5. Applicant Information: Key details about the applicant including full name, ID number, and current position/status

6. Professional Assessment: Evaluation of the applicant's professional standing, income stability, and employment history

7. Financial Assessment: Commentary on the applicant's financial responsibility and ability to repay

8. Character Reference: Assessment of the applicant's character, reliability, and integrity

9. Recommendation Statement: Clear statement of recommendation for loan approval

10. Closing: Professional closing with contact information for further verification