loan commitment


Also found in: Legal.

Loan commitment

Assurance by a lender to make money available to a borrower on specific terms in return for a fee.

Loan Commitment

The amount in loans that a bank will make or may be required to make in the near future, but has not yet made. Loan commitments may be open-ended or closed-ended. Suppose a bank approves two loans in a year; one is a revolving line of credit for $50,000 and the other is a business loan for $100,000. One would say that this bank has an open-ended loan commitment of $50,000 (because the principal amount in the loan, when repaid, may be borrowed again) and a closed-ended loan commitment of $100,000 (because once its principal is repaid, it no longer must be committed to that borrower). Banks must disclose their loan commitments.

loan commitment

In real estate,a formal promise by a lender to loan up to a specified amount of money, depending on the appraised value of the collateral, with additional details regarding the interest rate, term of the loan, property on which mortgage will be taken, and a date on which the commitment will expire.

References in periodicals archive ?
assumed Schneider's obligation under the original commitment letter to pay a loan commitment fee or (2) by which Schneider was relieved of its obligation to pay that fee.
Nissan expects the loan commitment to result in the upgrading of its long-term debt rating, the source said.
Alcentra Capital Corporation (NASDAQ Global Select Market: ABDC) said it has provided a senior secured loan commitment in the amount of USD11.25 million to A2Z Wireless Holdings, LLC.
Bilateral loans accounted for almost 50% of the loan commitment of US$ 81.11 billion for the government by the end of December, 2000.
Before the government team left for the Tokyo meeting of CGI, many observers doubted that the delegation would succeed in their mission to secure new loan commitment totaling US$ 4.8 billion from the donor consortium, but the government did succeed.
In the instant case, the following transactions gave rise to expenses for professional fees: (1) professional fees for services rendered in connection with filing administrative and judicial actions by X to enjoin Z's takeover attempt; (2) professional fees for services performed in connection with rendering the fairness opinion; and (3) professional fees for services rendered in connection with X's self-tender offer and the counter tender offer of Z stock, which include steps taken towards obtaining X's loan commitment and valuation estimates of X and Z assets.
The Credit Facility has an accordion feature which allows for an increase in the total loan commitment to $150 million.
The significant oversubscription by a diversified syndicate of banks, as well as the long term loan commitment reflect the trust of the banks in the prospects of Infineon and this important acquisition, says Dominik Asam, Chief Financial Officer of Infineon Technologies AG.
At the opening of the recent CGI meeting, the Leader of the Indonesian delegation, namely Coordinating Minister for Economic and Financial Affairs Saleh Afiff, did not hesitate to express his optimism that the CGI's loan commitment for Indonesia for 1997/1998 would not decline, saying that if Japan and the United States reduced their loan commitments, the Worm Bank and the Asian Development Bank would do something to compensate for the reductions.
M2 EQUITYBITES-December 2, 2016-Sino Agro Food announces USD36.3m loan commitment for developing aquaculture business
First, ICBC has expanded the free business scope for small and micro enterprises and exempted fees, including small and micro enterprise loan commitment fee, legal person account overdraft commitment fee, commitment credit line fee, revolving loan commitment fee, bank acceptance bill commitment fee, commission charge of issuing letter of intent for loan, commission charge of issuing letter of commitment for loan, commission charge of issuing letter of guarantee of various kinds, fund management fee, perennial financial consultant fee, and high-end financial consultant fee.
The program, established in 1977, is designed to provide an efficient and consistent review and classification of any loan or loan commitment shared by three or more supervised institutions and totaling $20 million or more.