Investments glossary

Loan Committee Definition

A loan committee is the lending or management committee of a bank or other lending institution. It generally consists of upper-level officers with management authority. The loan committee analyzes and subsequently approves or rejects any loan that the initial loan officer does not have the authority to approve. The committee ensures that the loan meets the institution’s standard lending policy. If it does, the committee can agree to fund and disburse the loan with a binding commitment.

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