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lead bank

managing bank

participating bank

borrower

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Q: Who are the parties to a loan syndication?
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Related questions

What are the benefits of syndication?

what are the benefits of loan syndication


Difference in loan syndication and multiple banking?

multiple banking is use of more than one bank while loan syndication is where several banks lend the money for one loan.


What is the difference between loan syndication and consortium finance?

The main difference between loan syndication and consortium finance is that syndication is done based on common terms between the lender and borrower. Consortium finance has to be arranged by the borrower, such as when one bank cannot accommodate the entire loan amount.


What is the definition of the phrase loan syndication?

The definition of the phrase syndication loan is: "A loan offered by a group of lenders who work together to provide fund for a single borrower." The borrower could be a corporation, a large project or a government.


What are the reasons why financial institutions go into loan syndication?

A syndicated loan is the opposite of a bilateral loan, which only involves one borrower and one lender (often a bank or financial institution.) A syndicated loan is a much larger and more complicated version of a participation loan. There are typically more than two banks involved in a syndication.


What are the limitations of net present value in evaluating business profitability?

benefits of loan syndication


How interest is calculated in loan syndication?

interest=princibal x rate x time


What are the disadvantages of loan syndication?

Time consuming process since negotiating with bank can take various days , this loan syndication is a Time consuming process. Borrowers may also be adversely affected by syndicated loan agreements . If the problem arises, it may be difficult for orrowers to satisfy all banks at the same time.


What is the difference between syndication of loan and consortium finance?

syndication of loan is arranged by a lead arrangers and it is on common terms which is finalised between borrower and arranger where as in consortium loan borrower has to arrange the finance himself from different bank this finance on different term and at different pricing Loan Syndication and Consortium finance is resorted to when a client needs a huge loan which a single Bank either cannot provide or cannot take risk to provide. In Loan Syndication, a large bank approaches the client, fixes up the terms and conditions, interest rates etc. Thereafter, he approaches other Banks for "selling" of this loan. The other banks ,if agree, "purchase" a part of the loan on the same or different terms and conditions. In Loan Syndication, the client deals with one Bank only. In Consortium Finance, a Large Bank approaches the client, collects the information about amount of loan, terms and conditions and then calls a meeting of other Banks. Those who agree to lend the money approach the client and the client fixes up the loan with each of them separately. The follow-up and other jobs is done by the Leading Bank of the consortium which is mutually decided by the participating Banks.(Need not be the highest lender).


Who are the various participants in loan syndication?

There are three primary - Investor constituencies ; Banks ; Finance Companies : and Institutional Investors.....


What you meant by credit syndication?

It is the alternative term for syndicated loan. It is the process of involving numerous different lenders in providing various portions of a loan.It is mainly used in extremely large loan situations, syndication allows any one lender to provide a large loan while maintaining a more prudent and manageable credit exposure because they aren't the only creditor.


What is full form of rss?

simple RSS stands for "really simple syndication" syndication here refers to syndication of web content