Full form: Letter of Intent. Category: Offers and Contracts.
A letter of intent, or LOI, is a document stating a company intends to hire you, usually issued after selection but before the formal offer letter. It typically outlines the role and package but is weaker than an offer letter and often not a binding commitment.
Companies issue LOIs to lock in selected campus candidates months before joining dates, while final paperwork, background checks, or business planning completes. An LOI usually names the role, an indicative package, and expected joining timeline, with the formal offer letter to follow closer to onboarding.
Treat an LOI as a strong signal, not a firm promise. In weak hiring markets some companies have delayed or not converted LOIs. Keep preparing and keep your options open until you hold a formal offer letter with a joining date, and read your placement cell policy on whether an LOI counts as a placed status.
The critical thing to check is how your placement policy treats an LOI. Some cells count it as a placed status and restrict you from further drives, while others only count a formal offer letter. This matters a great deal, because if an LOI locks you out of the season but is later delayed or not converted, you could end up with neither the intended job nor access to other companies. Ask your placement cell in writing how an LOI is classified for your batch before you assume you are settled.
A frequent fresher mistake is relaxing completely once an LOI arrives. Because the document feels like a job in hand, some students stop preparing, decline other opportunities, and mentally check out of the season. That is risky when the gap between an LOI and joining can stretch across months, during which business needs can change. The safer stance is to celebrate quietly, stay in touch with the company, respond promptly to any documentation they ask for, and keep your preparation and backup options warm until the formal offer with a joining date is actually in your hands.
When the LOI does arrive, read what it actually commits. Note the indicative role and package, the expected joining timeline, and any conditions the company attaches, such as completing your degree without new backlogs or clearing a document check. If it references a service agreement or a bond, understand that too, since those terms carry into the final offer. Keep the LOI and every related communication on file, so that when the formal offer letter comes, you can confirm the terms match what you were told rather than discovering a change late.
Generally it is a statement of intent rather than a binding employment contract, though the specific wording matters. The offer letter and appointment letter are the stronger documents.
Stay in touch with the company, complete any requested documentation promptly, and keep your preparation and alternatives alive until the formal offer and joining date arrive.
It depends on your placement cell policy. Some count an LOI as placed status and restrict further drives, while others count only a formal offer letter. Confirm the rule for your batch in writing before you assume the season is over for you.
Definitions prepare you to understand the process. Practice prepares you to clear it. Browse the full campus placement glossary, read verified company interview questions, or rehearse the actual rounds in a scored AI mock interview.