What is the difference between syndication of loan and consortium finance?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

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 arrange 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).
4 people found this useful

What is lease syndication How is it different from normal loan or Bond syndication?

The Industry Dictionary maintained by LeaseForce International (www.leaseforce.com/ASP/Dictionary/bottom.asp?Action=FirstLetterSearch&Letter=L) defines a lease syndication as follows:. "The process of involving a number of different lessors and funding sources in providing various percentages of a (MORE)

What is the difference between commerce and finance?

commerce relates to the trade activities, exchange of commodities etc. while finance deals with budgeting, accounting,bookkeeping etc. finance is a subject in commerce.. commerce is business,marketing,accounting,controlling these activities. while finance is focussed function related to inflows (MORE)

What is the difference between finance and accounting?

Accounts have to do with the daily records of financial activities of an organization. Accounts are managerial level it includes recording classifing summerising the results to the stake holders of the company. Finance deals with the admisterial level it includes various decisions like procureme (MORE)

What is the difference between finance and financing?

Financing is nothing but a complete process or department who works for providing loan or financing aid. Normally in Islamic banking Financing is the preferred word for loan and related activities such as loan origination, disbursement and repayment/Collection. Finance means the department or proce (MORE)

What is the difference between consortium and joint operation?

Consortium . Two or more companies who agree help each other and not to compete with each other in order to achieve a common goal. Each company remains independent.. Joint operation . Two or more companies who have joined together to create a larger company. The companies lose some of their i (MORE)

Difference between Islamic finance and conventional finance?

Islamic finance is the following Charitable loans or partnership ( investor partners with borrower in capital venture) Charitable loan means there is no interests (usury) or profits on loans. Lender can't profit from a shade of a tree while collecting his/her depts. This means the lender can't (MORE)

What is the difference between loan and advance?

The main difference between Loan and Advance : the interest component. 2. Both Loan and Advance are to be repaid in installments for example: monthly installments of equal amounts. 3. In case of Loan, interest is calculated ( Simple or Compound type interest) and the interest amount is recovered (MORE)

What are the difference between personal finance and personnel finance?

Personal and personnel are typically misspelled when related to thequestion phrase; however, PERSONAL finance refers to individual orfamily finances. PERSONNEL finance refers to the way a company willfund outsourcing of specific services (e.g., consulting,programming, etc.). Personal finance refers (MORE)

What is the difference between overdrafts and loans?

An overdraft is a specific type of loan associated with a checking account. A loan is a generic way to provide value immediately to the borrower in return for that borrower to pay back the value (plus interest) over time to the lender. An overdraft (also known as overdraft protection) is specif (MORE)

What is the difference between a consortium and syndicate?

Both terms are interchangeable. Generally, a consortium is formed for the first to transact some business such as consortium of underwriters A syndicate on the other hand is for repeated business. Two or three banks may join hand and provided syndicated loans to the industry.

Difference between debt finance and equity finance?

Debt Financing Debt financing involves borrowing money, typically in the form of aloan from a bank or other financial institution or from commercialfinance companies, to fund your business. Getting a business loan generally requires good credit and solidfinancials, as well as collateral for larger (MORE)

What are the differences between accounting and finance?

Accounting generally refers to how transactions are recorded and reported. Finance generally relates to initiating transactions to aid in cash, investment and other working capital management - including interest and foreign exchange hedging. Some senior accounting or finance staff have cross- (MORE)

What is a difference between finance and economics?

Economics is a discipline that studies trade across all similar and dissimilar markets.it is a social science that deals with concepts like price and demand. Finance is a subset of economics that studies the financial markets. The financial market is a market that brings together borrowers and le (MORE)

Difference between international finance and domestic finance?

Following are the major differences: Exposure to ForeignExchange: The most significant difference is of foreigncurrency exposure. Currency exposure impacts almost all the areasof an international business starting from your purchase fromsuppliers, selling to customers, investing in plant and machi (MORE)

Difference between funding and financing?

Funding is money provided for a specific purpose, often by anorganization or the government. Financing is obtaining orfurnishing money or capital for an enterprise or purpose, and isoften done by banks and other lending institutions.

What is the difference between finance accounts?

The following is the distinction between Accounts & Finance: 1) Score keeping Vs Value Maximising: Accounting is concerned with score keeping, whereas finance is aimed at value maximising. The primary objective of accounting is to measure the performance of the firm, assess its financial condition, (MORE)

What is difference between Consortium and syndication?

syndication:- it is a process in which one bank which is acting as a lead bank takes the responsibility of arranging the whole amount of loan (which might be huge) for a corporate. since it can not be afforded single handedly, it then calls other banks for participation. the tranches are made and al (MORE)

What is the difference between a running finance and a cash finance?

Cash finance is a term that means that the goods are pledged or released to the borrower against the cash payments only. The bank usually appoints a person who can be called a Care Taker for the goods and who reports to the bank after the release of goods. While the running finance is offered by the (MORE)

What is difference between loan and finance?

loan is that amount which is taken from outside sources like any bank or any other financial institution but finance we can also provide by ourself like we can finance our business from our on personal source

Difference between joint venture and consortium?

In my opinion, In JV, the agreement is for a definite period and the entities having the JV have to bind legally, where as in Consortium, it is only for a specific project ,even though the consortium is for a definite period, lt may not stand legally.

Difference between banking and finance?

Finance is generally related to all types of financial, this could be accounting, insurances, policies. Whereas banking is everything that happens in a bank only. The term Banking and Finance are two very different terms but are often associated together. These two terms are often used to denote (MORE)

What is difference between syndication loan and participation loan?

In a syndicated loan, different banks arrange for the loan money. They might interact with the borrower independently to design the loan terms. The syndicated loan may be arranged by one or more lead banks and then parceled out to the others. . However, in a participation, there are two relationshi (MORE)

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.

What is the difference between a mixed culture and a consortium?

The main difference between a "mixed culture" and "a consortium" is shared beliefs and working toward a stated, common goal. We have many countries with mixed cultures, but the groups may think and live as separately as if they still lived in their countries of birth. Or, within a country, differe (MORE)

What is the difference between syndicated loan and club loan?

A club deal , in finance, refers to a leveraged buyout or other private equity investment that involves several different private equity investment firms. Club deal can also be referred as syndicated investment . In a club deal, the investor group of private equity firms pools its assets together (MORE)

Difference between public finance and private finance?

Public finance is a branch of economics that deals with theexpenses and revenues from government to government in the economywhere as private finance deals to income and expenditure by theprivate sector. For more information, please visit the link below.

What difference between loan and credit?

Basically they mean the same thing. You can give someone a loan, or allow them credit which means to let them borrow money from you. However there is a slightly different use of the term 'credit' in accounting: there it means to increase in value (to reduce in valid is 'debit'). Even more confusin (MORE)

What is the difference between a loan and a mortgage?

A loan is a sum of money given by one party to another that has to be repaid according to the terms of the loan. A mortgage loan uses real property as collateral to guarantee repayment of the loan. The borrower transfers an interest in their real property to the lender during the life of the l (MORE)

What is the difference between finance and investment?

An investment is to spend money to buy some permanent good, either for private use or to use as a tool to earn more money. The property you buy is also often called an investment. Finance is the way you get the money before you spend it. You can finance something by saving until you have gathered (MORE)

What are the advantages and disadvantages of Syndicated loan?

Syndicated loans have an advantage of various funding sources forcredit facilities, which allow participating lenders to commitfunds towards an asset without conforming to large monetarycommitments. The biggest disadvantage of a syndicated loan is thatthe interest rate can go up at any time.

What are the differences between public finance and private finance?

The main objective of private finance is to allow the flow of cash among all the components of an economy so that uniform economic growth can be achieved. The private funding not only helps the government but all the citizens of a nation as they can avail of borrowed capital for various personal and (MORE)

What documents required for loan syndication?

Last 3 years Audited Reports. Last 3 years ITR of Companies and all the Directors. Last 12 months bank Statement of all the banks where company is maintaining its accounts. Last 12 months bank Statement of all the Directors of all the accounts. Latest Sanction Letter. Property Documents wh (MORE)

What is the difference between interest only financing and conventional financing?

The difference between interest only financing and conventional financing is that you are able to make money without any investment on an interest only account only by depositing a maximum amount in an account which you leave for a set period of time where interest will accumulate. Conventional bank (MORE)

What is the definition of the phrase loan syndication?

The definition of the phrase syndication loan is: "A loan offered by a group of lenders who work together to provide fund for a single borrower." The borrower could be a corporation, a large project or a government.

Who is a syndicated loan provided by?

A syndicated loan is provided by a group of lenders and is arranged by one or several commercial banks or investment banks. These banks are known as arrangers.

How does one arrange a syndicated loan?

A syndicated loan is provided by a group of lenders and is administered by more than one bank. If an individual is interested in arranging a syndicated loan, they may inquire with the appropriate employee at a commercial or investment bank in their area.

What the different between accounting and finance?

Accounting is a phylosophical science that helps to a language by which you can understand any information passed by a business. Finance is an important tool of a busuness that helps to solve any kind of finantial problem faced by the business.

What are the differences between microw finance and public finance?

Well, micro finance means extend credit to small businessmenincluding those engaged in cottage and small scale industries viz.,small farmers, fishermen, polutry nurturers etc,formingco-operatives of their own. Whereas public finance means creditextended by Government bodies to various institutions b (MORE)