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Unit - 3 Credit Syndication

Credit syndication service is when merchant bankers organize and procure financial facilities from financial institutions, banks, or other lending agencies on behalf of a client to meet their fixed capital and working capital requirements. This is also called loan syndication service. The scope of credit syndication includes identifying funding sources, handling legal formalities, disbursing loans to clients, applying for credit, and providing loans for new projects, expansion, diversification, modernization, participatory loans, and investment in corporate securities. Major institutions for syndicated loans in India include IFCI, IDBI, ICICI, and IRBI. Credit syndication services include ascertaining promoter and cost details, identifying funding sources, project appraisal, ensuring

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649 views

Unit - 3 Credit Syndication

Credit syndication service is when merchant bankers organize and procure financial facilities from financial institutions, banks, or other lending agencies on behalf of a client to meet their fixed capital and working capital requirements. This is also called loan syndication service. The scope of credit syndication includes identifying funding sources, handling legal formalities, disbursing loans to clients, applying for credit, and providing loans for new projects, expansion, diversification, modernization, participatory loans, and investment in corporate securities. Major institutions for syndicated loans in India include IFCI, IDBI, ICICI, and IRBI. Credit syndication services include ascertaining promoter and cost details, identifying funding sources, project appraisal, ensuring

Uploaded by

Praveen Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Definition: A project financing service offered by Merchant bankers whereby financial facilities are organized and procured from

financial institutions, banks, or other lending agencies is known as credit syndication service; financing being arranged on behalf of the client for meeting both fixed capital as well as working capital requirements. It is also called loan syndication service

Scope
Identifying sources of finance Legal formalities Disbursal of loan to the client Approaching the sources Applying for the credit

Loans for setting up new project Loans for expansion, diversification and modernization. Participatory loans Loans for making investment incorporate securities Refinancing loans Rediscounting loans

Types of syndicated loan

Institutions for syndicated loan


1. Industrial Financial Corporation of India(IFCI) 2. Industrial Development Bank of India(IDBI) 3. Industrial Credit Investment Corporation of India(ICICI) 4. Industrial Reconstruction Bank of India(IRBI)

Credit Syndication Services


Merchant bankers provide various services towards syndication of loans. 1. 1. Ascertaining promoter details 2. Ascertaining of cost details 3. Comparison of cost details 4. Identification of funding sources 5. Ascertainment of loan details 6. Project appraisal 7. Compliance for loan disbursement 8. Documentation and creation of security

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