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commitment fee

British

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

They reap 0.30 percentage points in a commitment fee for unused parts of the revolver.

From Los Angeles Times • Mar. 7, 2018

Lenders will receive a commitment fee of 1 basis point to join the deal coordinated by Citigroup Inc., according to Bloomberg data.

From BusinessWeek • Sep. 26, 2011

Highbridge, which will have first claim on the Dodgers’ assets, gets a $4.5 million deferred commitment fee, plus 0.5 percent of the unused part of the loan, payable monthly.

From BusinessWeek • Jun. 27, 2011

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023