What is consortium financing?
Under consortium financing, several banks (or financial institutions) finance a single borrower with common appraisal, common documentation, joint supervision and follow-up exercises, these banks have a common agreement between them, the process is somewhat similar to loan syndication.
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pool resources The meaning of consortium is a group or an association of variouscompanies.
consortium is an association of two or more individuals, companies, organizations or governments with the objective of participating in a common activity or pooling their reso…urces for achieving a common goal . A group of people or organizations, that consorts with each other in order to achieve a common aim.
The World Wide Web Consortium, otherwise known as W3C, is the international standards authority for the World Wide Web. It currently has 379 members and is run by the founder,… Tim Berners-Lee at MIT.
syndication of loan is arranged by a lead arrangers and it is on common terms which is finalised between borrower and arranger where as in consortium loan borrower has to arra…nge the finance himself from different bank this finance on different term and at different pricing Loan Syndication and Consortium finance is resorted to when a client needs a huge loan which a single Bank either cannot provide or cannot take risk to provide. In Loan Syndication, a large bank approaches the client, fixes up the terms and conditions, interest rates etc. Thereafter, he approaches other Banks for "selling" of this loan. The other banks ,if agree, "purchase" a part of the loan on the same or different terms and conditions. In Loan Syndication, the client deals with one Bank only. In Consortium Finance, a Large Bank approaches the client, collects the information about amount of loan, terms and conditions and then calls a meeting of other Banks. Those who agree to lend the money approach the client and the client fixes up the loan with each of them separately. The follow-up and other jobs is done by the Leading Bank of the consortium which is mutually decided by the participating Banks.(Need not be the highest lender).
The main difference between loan syndication and consortium financeis that syndication is done based on common terms between thelender and borrower. Consortium finance has to …be arranged by theborrower, such as when one bank cannot accommodate the entire loanamount.
1. a combination of financial institutions, capitalists, etc., for carrying into effect some financial operation requiring large resources of capital. 2. any association, part…nership, or union. 3. In law . the legal right of husband and wife to companionship and conjugal intercourse with each other: In a wrongful death action the surviving spouse commonly seeks damages for loss of consortium.
Consortium Lending is that type of lending in which two or more banks come together to finance the big projects requiring huge amount of money. Consortium lending is usually d…one by banks to distribute the risks among the group of banks ,it is also used by smaller banks to use as an opportunity to be a part of the big project financing and to gain expertise in this area. Big banks by resorting to consortium lending not only saves their prospective customers but also builds good relations with other banks.
Can be either consortiums or consortia.
The word "consortium" refers to a collaboration between two or more groups or individuals in order to achieve a shared goal. The word comes from the Latin for "partnership".
Consortium agreement is a kind of agreement with different kind ofeligible schools. Schools which are part of this agreement receiveaid from other schools.
A consortium is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating… in a common activity or pooling their resources for achieving a common goal.
'Library consortium' may be defined as "an association or group oflibraries who come together to achieve the common goal of 'optimumusers satisfaction' with the participation …in a common activity andsharing the resources."
Consortium, an association of two or more individuals. Another word for this is organization, company, coalition, alliance, group, mob, outfit, cartel, government, syndicate, …corporation, gang. Consortium is a Latin word meaning 'partnership, society or association'.
British Retail Consortium was created in 1992.
Caspian Pipeline Consortium was created in 2001.
ACAC consortium was created in 2002.