• Syndicated Loans

    As the name refers, Syndicated loan happens when multiple banks form a group to collectively satisfy a high funding requirement of a borrower. This grouping happens when the funding requirement of the borrower is very high and much higher than the credit limit of a single bank. All the banks lend only the amount to the same borrower they are entitled to.

    The main banker of the syndicate manages all the legal terms and credit details and takes help from other member banks to meet the credit requirement. In case of default, banks can take legal action either independently or jointly.

    Syndicated loans mostly happen in corporate sector where multiple banks come under one lead bank to satisfy huge credit requirement of the borrower.

    Post Tagged with

Leave a Reply

Your email address will not be published. Required fields are marked *