What is the difference between Loan Syndication and Loan consortium?
Arpit Gupta
(Chartered Accountant )
(95 Points)
Replied 25 March 2009
Loan Syndication - when more than one lender in a group, i.e. in the co-operation of other lenders, lends money (due to non fulfillment of demend of borrower alone i.e. the amount to be lent is very huge) then such type of loan are typically called as syndicated loan
Loan Consortium - this term is very similar to loan syndication basically these two words are used interchangeably but there is very minor difference between two the former onbe used in regular kind of activity while the later one is used only for once i.e. cosortium gets ended after the one lending transaction.
In common parlance, when more than one business group (working in the same area) combines togeather for the purpose of a common activity or goal without loosing thier seprate identity considered as consortium
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