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).
The main difference between loan syndication and consortium finance is that syndication is done based on common terms between the lender and borrower. Consortium finance has to be arranged by the borrower, such as when one bank cannot accommodate the entire loan amount.
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.
The difference between the commercial banks and micro finance banks is in their functions and ability. The main difference is in the lending limits with micro finance banks having lower limits.
I just want to understand the differrence between Admin and finance.
There are three primary - Investor constituencies ; Banks ; Finance Companies : and Institutional Investors.....
The main difference between loan syndication and consortium finance is that syndication is done based on common terms between the lender and borrower. Consortium finance has to be arranged by the borrower, such as when one bank cannot accommodate the entire loan amount.
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 An Accountant and a Finance officer?
home minister and finance minister are same there is no any difference between them.....
The difference between the commercial banks and micro finance banks is in their functions and ability. The main difference is in the lending limits with micro finance banks having lower limits.
NO
I just want to understand the differrence between Admin and finance.
There are three primary - Investor constituencies ; Banks ; Finance Companies : and Institutional Investors.....
The difference between the bachelor of science and the bachelor of arts is that the science degree has more course requirements that focus on finance. The BA will require more general education courses.
Both are people.
As we can understand by the name micro finance is the study of individual on the other hand macro finance is the study of whole group.
What is difference between account executive and finance executive?