The role of the loan commitment letter:

A formal legally binding agreement between a bank and a borrower. During the effective commitment period, the bank is ready to provide loans according to the conditions, amount and interest rate agreed by both parties, and has the right to charge the borrower the commitment fee.

Loan commitments are divided into project loan commitments and working capital loan commitments, which are mainly used for project loans.

2. What are spot loans and loan commitments?

Loan commitment refers to the agreement that the bank promises to provide loans to the borrower in a certain period of time or a certain period of time according to the agreed conditions. Off-balance-sheet business of banks is a kind of direct credit promised at some time in the future. Can be divided into irrevocable loan commitment and revocable loan commitments. The customer must pay a certain commitment fee for the unused part of the loan within the specified loan amount.

3. What are spot loans and loan commitments?

Loan commitment refers to the agreement that the bank promises to provide loans to the borrower in a certain period of time or a certain period of time according to the agreed conditions. Off-balance-sheet business of banks is a kind of direct credit promised at some time in the future. It can be divided into two unused parts: irrevocable loan commitment and revocable loan commitment, and the customer must pay a certain commitment fee.