Bank Credit Syndication
BANK LOAN SYNDICATION
Bank loan syndication is the process of involving several different lenders in providing various portions of a loan. Loan syndication most often occurs in situations where a borrower requires a large sum of capital that may be too much for a single lender to provide or outside the scope of a lender's risk exposure levels. Thus, multiple lenders work together to provide the borrower with the capital needed.
Documents required for Bank loan syndication:- (All copies of documents should be self attested by the customer)
List of present shareholders, partners, directors
Income tax certificate
Sales tax returns and assessments orders for the last three years (if in existence)
Photograph of all the partners or directors with signature.
Detailed project report if any
Process for Bank loan syndication:
Monitor project implementation to achieve the Commercial Operation Date (COD).
Appoint Escrow Agent and open Escrow a/c with the bank.
Monitor inflow of funds to escrow a/c.
Ensure repayment among the lenders in the prescribed manner.