A bank line, also known as a line of credit, refers to a bank's moral commitment to lend to a particular borrower up to a specified maximum during a specified period, usually one year. Unlike a legal commitment, it does not involve charging a commitment fee.
A commitment fee is a fee charged by a bank to keep open a line of credit or to continue to make available unused loan facilities. The fee is typically an annual charge made by the lender on the daily undrawn balance of the facility and is often expressed in basis points.
A credit line, also known as a line of credit, refers to a pre-approved loan amount that a borrower can draw upon as needed and repay either immediately or over time. It is commonly used for short-term borrowing needs.
A line of credit is an agreement between a financial institution and a borrower that allows the borrower to access funds up to an approved limit, providing flexibility in borrowing. It is not necessary to reapply each time funds are needed, but repayment is expected as the credit is used.
Open-End Credit is a revolving line of credit offered to consumers by banks, savings and loans, and other lenders, allowing for repeated borrowing up to a specified limit.
