Loan Sanction Letter Scanner & Verification Tool
Upload your home loan, personal loan, or business sanction letter to verify bank commitments, uncover hidden deduction charges, and flag risky pre-disbursement conditions.
Upload Sanction Letter or Approval Document
Supports PDF, DOCX, and TXT. Analysis is processed in-memory with zero document retention.
Drop your document here, or browse files
Supports PDF, Word (.docx), and Text (.txt) up to 12 MB • Maximum 25 pages
Essential Sanction Letter Verification Checklist
Before signing the sanction acceptance copy, review these 6 critical parameters:
1. Sanctioned Amount vs Net Disbursement
Verify if the loan amount printed is gross or if processing fees, documentation charges, and loan insurance will be deducted upfront.
2. Interest Rate Benchmark & Spread Margin
Check if the rate is Repo-linked, SOFR, or MCLR. Crucially, verify if the bank retains the unilateral right to increase the spread margin during the tenure.
3. Sanction Validity Expiry Date
Most sanction letters are valid for only 30 to 90 days. If disbursement is delayed past this window, the lender may demand fresh processing fees or alter interest rates.
4. Pre-Disbursement Special Covenants
Watch for conditional requirements such as co-applicant guarantees, builder tripartite agreements, or strict title clearances that can block funding.
5. Prepayment & Foreclosure Terms
Ensure no foreclosure or part-prepayment penalties apply to floating rate home or personal loans, in accordance with regulatory usury rules.
6. Non-Refundable Processing Fees Clause
Confirm whether the processing fee you already paid will be forfeited if you choose not to accept the sanction offer.
Is a Loan Sanction Letter Legally Binding?
A sanction letter is an in-principle conditional offer by the lender—it is NOT a final loan agreement. Banks frequently include clauses stating: "The bank reserves the right to cancel or revoke this sanction at any stage without assigning any reason."
Never make non-refundable payments or commit to real estate or vehicle purchases until all pre-disbursement conditions in your sanction letter have been satisfied and documented in writing.