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Loan commitment
Loan commitmentAssurance by a lender to make money available to a borrower on specific terms in return for a fee. RELATED TERMS-------------------------------------- Lender Person or institution that lends money to someone else. Money A means of payment, especially coins and banknotes, although some definitions also include bank deposits, checks, etc. Return The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period. Fee A fixed amount or a percentage of an underwriting or principal. SIMILAR TERMS-------------------------------------- Loan Something lent (usually money) that will have to be given or paid back (usually with interest). Loan account An account, opened for a customer by a bank, following the granting of a loan. Loan amortization schedule The timetable for repaying the interest and principal on a loan. Loan capital That part of a company's capital structure which is raised by loans. Loan consortium A collaboration among financial institutions that pools capital to lend to affordable housing and community development projects. Loan crowd Historical term. In the 1920's and 1930's, it refers to the group of member firms that lend or borrow securities needed to cover the positions of customers who have sold short securities. Loan guarantee A program offered by state and federal agencies which decreases a lender's risk by guaranteeing a portion of a debt against default. Loan preference principle The theory that a covered loan is less expensive when its cost is calculated in one currency, it will also be less expensive in all other currencies. Loan protection policy An insurance policy in which the insured pays regular premiums in return for insurance against being unable to repay a loan due to accident, sickness or unemployment. Loan stock A security bearing a fixed rate of interest. The capital (the amount loaned) is repaid after a given period of time. Loan syndication The process of involving numerous different lenders in providing various portions of a loan. Loan to value ratio (LTV) The ratio of money borrowed on a property to the property's fair market value. Loan value The maximum percentage of the value of securities that a broker can lend to a margin account customer, as dictated by the Federal Reserve Board in Regulation T. Loaned flat Securities lent interest-free between brokers to cover customers' short sale positions. PREVIOUS AND NEXT TERMS-------------------------------------- Load to load Arrangement whereby the customer pays for the last delivery when the next one is received. Loan Something lent (usually money) that will have to be given or paid back (usually with interest). Loan account An account, opened for a customer by a bank, following the granting of a loan. Loan amortization schedule The timetable for repaying the interest and principal on a loan. Loan capital That part of a company's capital structure which is raised by loans. Loan commitment Loan consortium A collaboration among financial institutions that pools capital to lend to affordable housing and community development projects. Loan crowd Historical term. In the 1920's and 1930's, it refers to the group of member firms that lend or borrow securities needed to cover the positions of customers who have sold short securities. Loan guarantee A program offered by state and federal agencies which decreases a lender's risk by guaranteeing a portion of a debt against default. Loan preference principle The theory that a covered loan is less expensive when its cost is calculated in one currency, it will also be less expensive in all other currencies. Loan protection policy An insurance policy in which the insured pays regular premiums in return for insurance against being unable to repay a loan due to accident, sickness or unemployment. We thank you for using the Financial Dictionary to search for Loan commitment. If you have a better definition for Loan commitment than the one presented here, please let us know by making use of the suggest a term option. This definition of Loan commitment may be disputed by other professionals. Our attempt is to provide easy definitions on Loan commitment and any other medical topic for the public at large.
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