Loan Commitee is The lending otherwise management committee of a bank or other lending institution that analyzes and subsequently approves or discards any loan that the initial loan officer does not have the authority to support. First, the committee make sure that the loan meets standard lending policy. Assuming the loan meets this standard, the committee can permit to fund and disburse the loan with a binding commitment.

The loan committee is accountable for periodic credit reviews of the bank’s maturing loans. It also determines what collection action should be taken on past-due loans. The loan committee is generally composed of upper-level officers of the bank otherwise lending institution with management authority.