Loan syndication is the process in which several lenders come together to finance a single borrower. Such a loan is termed a syndicated loan. A borrower, in this case, can be a large-scale project, an association, or the government. Only a fixed amount of funds are granted under loan syndication. A syndicated loan also helps the lenders to reduce the risk factor by spreading it among themselves.
Under this process, the terms and conditions are applied to all the lenders are preferred to be common but are generally similar.
The loan syndication process is divided into three stages i.e.
The primary function of loan syndication is to meet the borrower’s demand for long term loans. A syndicated loan is mainly utilized by those people who wish to procure funds for their new projects in the sectors such as power, roads, telecommunication, transportation etc.
A syndicated loan is mainly granted for ten to twenty years for a large scale project. While for a short term project, it can vary from three to ten years. Interest rate is calculated in consideration of the requirements of different borrowers. Lending rate policies, provisions of the loan agreement and other regulations are kept in mind while calculating interest rate.
When it comes to receiving the best loan syndication in Gurgaon, Mumbai, Kolkata, Delhi and Jaipur, look no further than contacting Resurgent India ( A leading investment bank in the SEBI category. We have a strong relationship with our clients and sponsors. On top of that, we have decades of experience acting as an arranger for many top-notch clients. Contact our experts to get more information about our services.
