commitment fee

noun

1. a charge made by a bank, in addition to interest, to make a loan available to a potential borrower

Example Sentences

In addition, Thailand must pay 0.15% per year as a commitment fee, which locks in the lending terms as long as there are undisbursed funds.

From Seattle Times

In addition, Thailand must pay 0.15% per year as a commitment fee, which locks in the lending terms as long as there are undisbursed funds.

From Washington Times

Desperate, SimDag paid a $150,000 commitment fee — presumably for a loan of up to $200 million — to a purported “faith-based” lender named Providence Funding, run by Byron Levon Canada, who masqueraded as a priest and had served time in federal prison for fraud.

From Salon

A 50bp commitment fee is included for tickets of at least $150 million on the secured tranche and 25bp for all other ticket sizes.

From Reuters

The unsecured tranche has a 75bp commitment fee for tickets of at least $50 million and 50bp for all other commitments.

From Reuters