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Credit Reference Letter

Credit reference letters are given by the bank as an assurance of honesty for both buyer and the seller. Both the selling party and purchasing party have to accept the terms and conditions given in the letter of credit. The bank acts as a go-betweenthe selling and purchasing party through issuing credit letter.

Some tips to write a good Credit reference letter

  1. Write the purpose of the letter clearly. Write that you are writing this letter as a guarantee for someone and requesting the bank to give the financial support.
  2. Mention all the details, what is your relation with the person asking for the financial support, what is his purpose to take the loan etc. Also mention about your goodwill with the bank.
  3. Write this letter in professional language, yet the tone must be friendly. This can be written in informal way.

Credit Reference Letter Sample









Subject – Credit reference letter

Dear Sir/ Madam

I am the undersigned Mr. Roy, the proprietor of M/s .J.K Industries, I am having a current account with you bank since last 9 years and I have maintained a nice transaction record till the date. I all the time receive a good treatment from your staff at the bank. I am very glad to know that your bank gives backing to the new upcoming entrepreneurs willing to start their own business. But for this matter, some kind of reference or guarantee is essential. My brother is willing to begin his own business of machinery and tools but he needs some capital to be invested in the business. He had come to your bank for the financial support and where he came to know that he is required to give reference of a current bank member. I can assure you on his behalf and take his guarantee that he will repay the credit amount in timely manner and according to the rules given by you. I can give my reference for his repayment.

Thanking You


Yours Sincerely,


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