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.

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.

A syndicated loan is the opposite of a bilateral loan, which only involves one borrower and one lender (often a bank or financial institution.) A syndicated loan is a much larger and more complicated version of a participation loan. There are typically more than two banks involved in a syndication.

Syndicated loans have an advantage of various funding sources for credit facilities, which allow participating lenders to commit funds towards an asset without conforming to large monetary commitments. The biggest disadvantage of a syndicated loan is that the interest rate can go up at any time.

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 relationships - one between the borrower and the lead bank , second between the lead bank and the participant. The participant does not have to maintain any relation with the borrower but is ensured a part of the proceeds by the lead bank, that is solely responsible for servicing the loan and maintaining relationships with the borrower.