loan commitment

  

Definition

Binding promise from a lender that a specified amount of loan or line of credit will be made available to the named borrower at a certain interest rate, during a certain period and, usually, for a certain purpose. The commitment letter often also specifies the terms and requirements under which the loan will be advanced. Lenders charge a commitment fee (ranging generally from 0.5 percent to 2.5 percent of the loan amount) for giving a written commitment.

Use loan commitment in a sentence

Related Videos




http://www.businessdictionary.com/definition/loan-commitment.html

Have a question about loan commitment? Ask for help in the
Community
advertise here

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z