loan commitment

loan commitment definition - business

loan commitment

A statement by a lender of the terms under which it will make available a sum of money at some point in the future. For example, a bank enters into a loan commitment with a customer to extend a mortgage loan at a specified rate. Also called standby loan commitment.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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