Committed credit line

During the availability of the line of credit, the borrower has the option of calling the loan amount.

When borrowing, the creditor often undertakes to provide the borrower with a credit line of a certain amount. Availability means that if the borrower meets the conditions for disbursement, he can use the amount of the loan in one or more installments during the availability period.

During the provision, the bank does not interests on the unused amounts, but the borrower already pays the so-called commitment fee. The commitment fee is the bank 's availability fee. The availability fee is annual (ie time-proportional), the amount of the fee projected on the undrawn loan amount is usually 1% per year. 

The start of charging the availability fee is the day the credit or loan is opened, and the last day is the day before the last day of the availability period. If the borrower withdraws the loan amount in full before the end of the availability period, the availability period ends on the day before the full amount withdrawal (disbursement) day. Of course, it is also possible that the borrower does not use the full amount of the loan in the end. In this case, you will no longer be able to withdraw amounts that have not been withdrawn by the end of the availability period.  

The payment of the availability fee is usually due at the same time as the interest payment.