What is the loan commitment letter issued in principle?
Issued by the head office and tier-one branches. The loan commitment letter is a legally binding formal agreement reached between the bank and the borrower. It is a credit business that is ready to provide loans at any time according to the conditions, amount and interest rate agreed by both parties, and has the right to charge the borrower a commitment fee. According to national laws, matters related to the letter of commitment must be issued by the head office and tier-one branches.