Meaning of “commitment fee” in the English Dictionary

business-english dictionary

"commitment fee" in Business English

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commitment feenoun [ C ]

uk us

BANKING, FINANCE an amount of money a bank, etc. charges a customer to keep a loan available for them:

They will be charged a commitment fee of up to $250,000 every three months for unused portions of the line of credit.

(Definition of “commitment fee” from the Cambridge Business English Dictionary © Cambridge University Press)