Commitment Fee
A fee lenders charge their borrowers for unused credit or credit that has been promised at a specified future date.

Investopedia Says:
A commitment fee is different from interest; although, the two are often confused. A lender charges a borrower a commitment fee to keep a line of credit open, or to guarantee a loan at a certain future date even though the credit is not being used at that particular time.

Related Terms:
Bank
Credit
Interest
Investment Bank
Line of Credit
Loan
Merchant Bank
Open End Credit
Retail Banking

• Retracement
• Retract
• Retractable Bond
• Retrocession
• Return
• Return Of Capital
• Return On Assets (ROA)
• Return On Assets (ROA)
• Return On Capital Employed (ROCE)
• Return On Capital Employed (ROCE)
• Return On Capital Gains
• Return On Equity (ROE)
• Return On Equity (ROE)
• Return On Gross Invested Capital (ROGIC)
• Return On Gross Invested Capital (ROGIC)
• Return On Investment Capital (ROIC)
• Return On Investment Capital (ROIC)
• Return On Investment (ROI)
• Return On Investment (ROI)
• Return On Net Assets (RONA)
• Return On Net Assets (RONA)
• Return On New Invested Capital (RONIC)
• Return On New Invested Capital (RONIC)
• Return On Revenue (ROR)
• Return On Revenue (ROR)