The Credit Extension Letter is a crucial document in Qatar's banking and financial sector, used when a financial institution formally offers credit facilities to a potential borrower. It represents the preliminary stage of credit facility documentation, typically issued after initial credit assessment and approval processes. The letter must align with Qatar Central Bank regulations, including Law No. 13 of 2012 and relevant QCB circulars, while also considering Sharia compliance where applicable. This document outlines essential terms such as facility limits, profit rates, tenor, security requirements, and conditions precedent, serving as the foundation for the subsequent credit relationship. It's particularly important in Qatar's business environment where formal documentation of credit terms is required for both conventional and Islamic banking transactions.

1. Letter Header: Bank's letterhead, date, reference number, and addressee details

2. Credit Facility Details: Specific type and amount of credit being extended

3. Key Terms: Principal terms including duration, profit rate (interest), and repayment schedule

4. Security/Collateral: Details of any security or collateral required

5. Conditions Precedent: Conditions that must be met before the credit facility becomes effective

6. Representations: Key statements about the borrower's status and capacity

7. Regulatory Disclosures: Required disclosures under Qatar banking regulations and consumer protection laws

8. Acceptance Instructions: How to accept the offer and deadline for acceptance