Loan Committment

Glossary

Banking

Loan Committment

A loan commitment to a company is made by a lender once a loan or loan facility has been approved by the credit committee and communicated via a commitment letter to the borrower that contains all of the terms and conditions. In a consumer finance setting, a customer applying for a mortgage will often receive a loan commitment stating that the borrower has in principle met the lender’s requirements for a mortgage

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