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Letter of Comfort Sample PDF Form

Letter of Comfort Sample PDF Form

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[Music] in april this year the union finance ministry had barred ministries and departments from issuing letter of comfort the idea was to usher in transparency and now the reserve bank of india has disallowed such quasi bank guarantee instrument provided by a corporate so what is this document a letter of comfort is a support document issued to a borrower that adds some strength to the transaction when giving loans letter of comforts are usually issued by a third party or a stakeholder in the transaction for instance a holding company can give a letter of comfort on behalf of its subsidiary or a government can issue a letter of comfort for public sector enterprises the letter of comfort can also be issued by banks nbfcs and auditors the letter of comfort is not legally binding or an obligation by the holding company to repay the loans it is just an assurance to the lender that the holding company is aware of the transaction the policies of the subsidiary and its intentions in seeking

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