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Friday, 29 March 2019

Loan Consortium or Loan Syndication


Loan Syndication is the process of involving a group of lenders to fund  various portions of loan for a single borrower.
Loan Syndication most often occurs when a borrower requires an amount too large for single lender to provide or when the loan is outside the scope of a lender's risk exposure levels.
Thus , multiple lender's form a syndicate to provide with the requested capital.
Loan Syndication is often used in corporate financing.

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