Loan Syndication: The Way Forward to Your Big Ticket Loan

Loan Syndication: The Way Forward to Your Big Ticket Loan

January 16, 2020 Admin
debt syndicationloan syndicationmerchant bankingfinancial services

Loan Syndication refers to the formation of a consortium of lenders in order to provide funds for the borrower. This is usually done in order to divide the risks and rewards of the disbursed amount among the lenders and optimize the ease of lending. A lead banker/lender is selected amongst the lenders and thereby, the amount is disbursed.

Loan Syndication: The Way Forward to Your Big Ticket Loan

In this post, we shall be discussing the processes involved in the syndication processes and how to attain the desired amount for your endeavors.

  • Maintaining impeccable repayment records for your organization: A past history of repayment cycles, as well as adherence to payment due dates, forms a favorable impression amongst lenders. This helps them gain confidence in investing their funds into your ambitious projects.
  • Gaining complete clarity, insights and anticipated returns on the investment. Lenders often seek a foolproof and concrete business plan and past expertise prior to investing. Borrowers would be needed to put forth their proposals and convince the lenders in order to secure the desired funding.
  • Selection of an agent to head the syndication: Organizations such as Resurgent India perform debt syndication across India. This is brought about by various empanelment with multiple banks and HNI folks. The modus operandi includes identification of the best fit lenders in accordance with their expectations as well as keeping the finance costs minimal for the borrowers. 
  • Conducting due diligence. It shall be Resurgent India’s job to conduct all the due diligence as well as the necessary documentation that needs to be in place for the lenders to disburse the said amount.
  • Adherence to the repayment cycles. Once the loan amount is disbursed, the lenders must adhere to the repayment cycles and ensure that there is no lapse in payment. This, in turn, helps them form a good reputation for themselves and maintain strategic relationships with all the stakeholders.

We, at Resurgent India, have syndicated over 350+ transactions and assisted in disbursal of amounts more than $5 billion USD. Resurgent India happens to be a SEBI registered Category I Merchant Banker and assists in a plethora of various financial services. Do write to us with your proposals and queries at corporate@resurgentindia.com.

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