When more than one bank are allowing credit facilities to one party in coordination with each other under a formal arrangement?
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It is a consortium as two or more financial institutions get clubbed together to provide credit facilities on a higher end to just a single entity found to be borrowing money from these institutions.
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This arrangement is called as syndication.
A syndicated loan is offered to a single borrower by a group of lenders, in this case, banks when the borrower needs fund for a large project. it involves a fixed amount of funds with or without credit facility.
It is useful for the borrower as no one bank can provide such huge funds
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