Document background
The Letter of Intent for Loan Application is a crucial preliminary document in the Indonesian lending landscape, typically used when a borrower wishes to formally initiate the loan application process with a financial institution. This document serves as the first formal step in the loan application journey, providing essential information about the proposed loan terms, borrower details, and intended use of funds. While not a binding loan agreement, it helps establish the framework for further negotiations and due diligence. The document must comply with Indonesian banking regulations, particularly Law No. 7 of 1992 on Banking (as amended by Law No. 10 of 1998) and relevant Financial Services Authority (OJK) regulations. It's particularly useful in complex loan scenarios or when dealing with significant loan amounts, as it helps both parties align their expectations before proceeding with the full loan application process.
