What is "Loan syndication" ?

Loan syndication is a group of financer who provide fianance to a single borrower so it is a one type of lending process.

Loan Syndication- a practice in which several bank each lend an amount of money to a borrower at the same time and for the same purpose.

 

Agreed with all.

A fundamental element of a loan syndication is that all payments made by the borrower must be distributed pro rata to each syndicate member according to their individual participation percentages. This is usually achieved through the mechanism of a 'sharing clause' in the loan agreement.

Loan Syndication means multiple lenders join together to provide loan to an organisation ( normally large) at an appropriate rate agreed upon by all the lenders.

 

 

Thanks for the invitation..agree with all

Loan Syndication, means different financers like financial institutions, operational companies, Organizational leaders, or sileant partners

Who represent one person or more to run the business is called loan syndication, for example,

Universal Hospitals in Abu Dhabi, Lulu Hyper Markets in Middle east

I agree with all the answers to colleagues

Sir I just want to add this must be a very dangerous process if the bussines entity is not very reliable. All the bank members should have a presence among the boar of directors. Every effort should be made to see that the venture does not go sick. The financers should have coordination between themselves to check any wastage of money and personal drawings shown as bussiness expense. The books should be properly audited to check any window dressing.

DEFINITION OF 'LOAN SYNDICATION' The process of involving several different lenders in providing various portions of a loan. Loan syndication most often occurs in situations where a borrower requires a large sum of capital that may either be too much for a single lender to provide, or may be outside the scope of a lender's risk exposure levels. Thus, multiple lenders will work together to provide the borrower with the capital needed, at an appropriate rate agreed upon by all the lenders.

A syndicated loan is one that is provided to a single borrower (a corporate, MNC, Government, etc.) by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks. Syndicate loan is provided mainly  as1) Revolving Credit,2) Term Loan,3) L/C4) an Acquisition.