Unused Line Fee

Last Updated: Jun 7, 2019

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Also known as a commitment fee, an unused line fee is a banking term used to describe a fee charged by a lender to a borrower to compensate the lender for its commitment to lend. They are typically associated with the unused amount of credit lines / revolvers or undisbursed loans. The Unused Amount means the Maximum Line (or Commitment) reduced by the outstanding Revolving Advances.