Lending & investment · Defined
Undisbursed loan proceeds
The portion of a loan commitment that has not yet been advanced.
Why it matters
An undisbursed amount is not necessarily freely available: it may be allocated to reserves, limited to eligible costs, or subject to unmet conditions. Compare usable proceeds with the same scope used in the completion forecast.
In practice
A project example
The remaining commitment includes an interest reserve that cannot simply be reassigned to a construction overrun.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.