Bank Promotion Exams

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Consortium Lending:

When a borrower chooses to avail finance from two or more banks by submitting a common application and financial statements, the financial arrangement is called consortium lending.

The borrower appoints lead bank and member banks. Except rate of interest, other terms and conditions / documentation would be common in this case.

Multiple Financing:

Under Multiple Lending Arrangement, the borrower avails finance from two or more banks by applying directly. But the banks are not bound to observe common norms.

But the borrower has to submit the quarterly statement related to the limits availed from various banks and charges on securities & certificate from the company’s auditor.