Syndicated Loan

Definition of 'Syndicated Loan'

A loan which is financed by a syndicate of banks or other financial organisations. This kind of loan is often offered to Less Developed Countries.

This gives the benefit that lenders can each contriubute a small part, such that risk is shared with other institutions. A single lender may negotiate a certain loan, and then look to other financial institutions for them to lend part of the loan.

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