- Commitment fee
- A fee paid to a commercial bank in return for its legal commitment to lend funds that have not yet been advanced. The New York Times Financial Glossary
* * *commitment fee commitment fee ➔ fee
* * *A fee paid by a borrower for a lender's commitment to make funds available.
* * *commitment fee UK US noun [C]► BANKING, FINANCE an amount of money a bank, etc. charges a customer to keep a loan available for them: »
They will be charged a commitment fee of up to $250,000 every three months for unused portions of the line of credit.
Financial and business terms. 2012.