Okuzeka
Finance & Banking vocabulary · Loans & Credit

Loan participation

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, loan participation means: An arrangement in which a lender shares an economic interest in a loan with another institution.

In Turkish: krediye katılım payı

How it is used

Distinguish purchasing a participation from directly becoming a lender under the original agreement.

Example sentences

  1. The smaller bank acquired a loan participation from the originating lender.

    It obtains an economic share in an existing loan.

  2. The loan participation agreement specified how recoveries would be shared.

    The agreement allocates receipts between the participating institutions.

Common collocations

  • loan participation agreement
  • purchase a loan participation
  • syndicated loanA large loan provided by a group of banks together under one agreement, so that no single bank takes all the risk.
  • lenderA bank, company or person that gives money to a borrower, expecting it to be paid back with interest.

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.