BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Syndicated Loan
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Group Loan
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Standard Loan
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Organised Loan
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Detailed explanation-1: -Solution : A very large loan extended by a group of small banks to a single borrower, especially corporate borrowers is known as syndicated loan.In most cases of syndicated loans, there is a lead bank, which provides a part of the loan and syndicates the balance amount to other banks.
Detailed explanation-2: -A syndicated loan is a loan extended by a group of financial institutions (a loan syndicate) to a single borrower. Syndicates often include both banks and non-bank financial institutions, such as collateralized loan obligation structures (CLOs), insurance companies, pension funds, or mutual funds.
Detailed explanation-3: -There are four main types of syndicated loan facilities: a revolving credit; a term loan; an L/C; and an acquisition or equipment line (a delayed-draw term loan).
Detailed explanation-4: -Syndicated loans are usually too large for a single lender to handle. For example, the Chinese corporation Tencent Holdings Ltd., the biggest internet company in Asia and owner of popular messaging services WeChat and QQ, signed a syndicated loan deal on March 24, 2017, to raise $4.65 billion.