Commitment period

The availability period is a period after the conclusion of the loan agreement, during which the borrower can request the disbursement of the loan.

Key related topics

Credit application Fundraising Project financing / Project finance

The availability period is the period of time available to the borrower to withdraw the loan amount in whole or in part if the disbursement conditions specified in the loan agreement are met. During the availability period, the bank is ready to meet the borrower 's disbursement request under the conditions specified in the contract. 

Investment loan contracts often include a period of availability, since the loan can be called in several installments as the investment progresses, according to a predetermined disbursement plan.

The possible length of the availability period varies by credit scheme. The relevant information is contained in the banks' condition lists and announcements. The length of the availability period from the conclusion of the contract is usually a maximum of 1-2 years, and cannot be longer than the term or grace period specified in the loan agreement.

The concluded credit agreement precisely, i.e. by date, defines the beginning and end of the availability period valid for the given transaction. Creditors charge a fee after availability, this is the commitment fee.

Last edited: October 18, 2022

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