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Investments glossary

Loan Syndication

Loan syndication is the process of involving a group of lenders in funding various portions of a loan for a single borrower. Loan syndication most often occurs when a borrower requires an amount too large for a single lender to provide or when the loan is outside the scope of a lender’s risk-exposure levels. Thus, multiple lenders form a syndicate to provide the borrower with the requested capital.

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