Commitment fee is the fee that is normally charged on a revolving credit agreement.

Name: Commitment fee is the fee that is normally charged on a revolving credit agreement.
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This is because a commitment fee is a fee charged to a borrower to compensate the lender for the cost of keeping a line of credit open, even if the borrower does not draw down on it. This fee is usually charged annually as a percentage of the unused portion of the credit line.

Commitment Fee Is the Fee That Is Normally Charged on a Revolving