Need of syndicated loan
Syndicated loans emerge when a venture requires too huge credit for a single lender or when a
venture needs a particular moneylender with aptitude in a particular asset class. Syndicating the loan on
a venture enables moneylenders to spread risk and participate in financial opportunities that might be
too large for their individual capital base. Financing costs on this sort of credit can be settled or
floating, in light of a benchmark rate, for example, the London Interbank Offered Rate (LIBOR).