Fee Charged if Loan Transaction Cancelled

Dear …

RE: Loan Application __(Reference #)__

Thank you for choosing __(name of Financial Institution)__ for your credit needs. We appreciate the opportunity to be of service to you.

Your application for a __($amount)__ loan __(is currently under review for approval/has now been approved)__. We want to take this occasion to bring to your attention that once __(your loan has been approved and)__ the loan documents are drawn up, should you decide to cancel this transaction, there will be cancellation fee in the amount of __($amount)__ charged to you. This administration fee covers the costs associated with the loan review and acceptance process. Please be aware that there will be no administration fee applied once we proceed with the loan.

Thank you again, __(name)__, for choosing __(name of Financial Institution)__ for your credit requirements. We look forward to doing business with you.

Yours truly,

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