Commitment letter,
Definition of Commitment letter:
A contractual letter in which a lender formally offers to make a loan to a potential borrower.
Lenders written undertaking to a borrower that a certain sum at a certain rate of interest will be made available on borrowers demand during a certain period, provided the requirements detailed in the offer are fulfilled. Borrowers use this evidence of commitment to arrange bridge financing, and lenders charge a commitment fee for this service. Also called loan commitment letter, or letter of commitment.
Meaning of Commitment letter & Commitment letter Definition
