Question:
An arrangement where a group of banks, which may not have any other business relationship with the borrower, participate for a single loan is known as:
An arrangement where a group of banks, which may not have any other business relationship with the borrower, participate for a single loan is known as:
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Loan syndication is a collaborative lending process for large-scale projects.
Updated On: Jan 8, 2025
- Consolidation in Banking
- Collateral Financing
- Loan Syndication
- Loan Diversification
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The Correct Option is C
Solution and Explanation
Loan syndication involves a group of banks or financial institutions coming together to provide a large loan to a single borrower.- This approach is typically used for projects requiring significant capital, which may exceed the capacity of a single bank
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