Letter of credit

Dear Sankar,

Letter of Credit

A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.

Commitment Charges

Commitment fees are small fees that are charged by a lender at the time that a mortgage or other type of loan is extended to an applicant. 

Regards,

Devendra Kulkarni