Loan Commitment


Also found in: Financial.

Loan Commitment

Commitment to a borrower by a lending institution that it will loan a specific amount at a certain rate on a particular piece of real estate. Such commitment is usually limited to a specified time period (e.g., four months), which is commonly based on the estimated time that it will take the borrower to construct or purchase the home contemplated by the loan.

References in periodicals archive ?
With the value of $300 million and a term loan commitment in the amount of $200 million, this new credit facility comprises of a rotating loan commitment.
First, a loan commitment gives a company the option to borrow a certain amount in the future, while a loan actually provides funds to the borrower.
announces it has signed a $21,000,000 loan commitment to refinance the 285-unit second phase of its Addison Place apartment community for ten years at a fixed interest rate of 6.
Schneider obtained a commitment letter from the banks, under which they agreed to provide acquisition financing; as consideration, Schneider agreed to pay a nonrefundable loan commitment fee and to indemnify the banks for any legal fees associated with the commitment of funds.
Earlier in the autumn of 1998, Nissan secured a similar one-year loan commitment from a group of 10 Japanese banks, led by IBJ.
More recently, Sunrise received an $88 million long term Freddie Mac loan commitment from GMAC.
That allowed the agency to retain a loan commitment from the state Housing Finance Agency.
A policy research panel at the ruling Liberal Democratic Party (LDP) has begun debating legal changes aimed at making it easier for banks to set up loan commitment lines as a way to resolve the credit crunch, party officials said Wednesday.
In the yen currency, Japan's loan commitment for 1997/1998 is even higher than that for 1996/1997 although in the US dollar currency it is lower as a result of the appreciation of the US dollar against the yen.
The closing of the new loan facility shows that Merck has a very good reputation among its banks owing to its strong position, and that a long-term loan commitment can be obtained with good terms and conditions despite the current financial market turbulence," said Matthias Zachert, CFO of the Merck Group.
BULLETIN BOARD: ELSF) said today that it signed a loan commitment from a private investor group for $1,500,000 to provide the company with increased financial flexibility.
A loan commitment is the obligation of a lender to make loans or issue letters of credit pursuant to a formal loan agreement.