What is Letter of Intent (LOI) in campus placements?

Full form: Letter of Intent. Category: Offers and Contracts.

Letter of Intent (LOI) meaning

LOI stands for Letter of Intent. In campus hiring it is a letter in which a company says it intends to hire you, usually subject to conditions such as final results, verification or business needs. It is an early commitment and it is not the same as the formal offer letter.

Companies send LOIs to secure selected candidates months before joining, while final paperwork, verification and business planning finish. An LOI usually names the role, an indicative package and the expected joining period. The formal offer letter follows closer to onboarding.

Treat an LOI as a strong signal and not as a promise. It generally does not carry the weight of an offer letter or an appointment letter, and its wording decides how much it commits the company. Read every condition in it.

Check how your college counts it. Some placement cells treat an LOI as a placed status and restrict further drives. Others count only a formal offer letter. Get the rule for your batch in writing before you stop applying elsewhere.

Do not relax completely. Keep practising, keep other options open and stay in touch with the company. Respond to document requests quickly and keep your final results on track, because many LOIs are conditional on them.

In one line: an LOI says we plan to hire you, and an offer letter says here are the exact terms of your job. Do not resign from anything or turn down other offers on the basis of an LOI alone.

Letter of Intent (LOI): common questions

What is the full form of LOI in placement?

In placement, LOI is short for Letter of Intent, the early letter that tells you a company wants to hire you.

What is the difference between LOI and offer letter?

An LOI states the intention of the company to hire you, often with conditions and indicative terms. An offer letter is the formal document with the role, pay breakup, joining date, location and conditions. The offer letter is the stronger document.

Is LOI the same as an offer letter?

No. They are different documents. Some companies send both, with the LOI first and the offer letter later.

Is a letter of intent legally binding?

Generally it states an intention and is not a binding employment contract, though the exact wording matters. Treat the offer letter and the appointment letter as the stronger documents. This is general information and not legal advice.

Does an LOI count as being placed?

It depends on the policy of your placement cell. Some cells treat an LOI as placed and restrict further drives, and others recognise only a signed offer letter. Get the rule in writing.

What should I do between the LOI and the offer letter?

Stay in touch with the company, complete any requested documents, keep your results on track and keep your preparation going until you hold a formal offer and a joining date.

Related placement terms

• Offer Letter: An offer letter is the formal document in which a company offers you a job. It states the role, the compensation breakup, the joining date, the location and the conditions of the offer, such as document verification or a service agreement. Accepting it means you agree to those terms.
• PPO (Pre-Placement Offer): PPO stands for Pre-Placement Offer. It is a job offer a company gives you before the regular placement season, usually because of how well you performed in an internship with that company. In many colleges, accepting a PPO counts as your placement.
• Placement Cell (TPO): The placement cell, headed by the Training and Placement Officer or TPO, is the college office that invites companies, manages student registrations and eligibility, schedules drives, and enforces placement policies such as offer tiers and one offer rules.
• CTC (Cost to Company): CTC stands for Cost to Company. It is the total yearly amount a company spends on you, including basic pay, allowances, employer provident fund, gratuity, insurance and any bonuses or variable pay. The money that reaches your bank account each month is lower than your CTC.

See the whole journey

The LOI is one step between selection and joining. Read how the offer letter, the joining letter and onboarding follow.

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