Loan Participation
Definition:
A "loan participation" is a financial arrangement where several banks work together to provide a large loan. Instead of one bank giving the entire amount, multiple banks share the loan. This helps them manage risk and allows them to lend more money than they could on their own.
Usage Instructions:
- "Loan participation" is a noun, so it is used to name this specific type of financial arrangement. - You can say "the loan participation was approved" or "the banks entered into a loan participation agreement."
Example Sentence:
"The two banks decided to enter into a loan participation to finance the construction of a new shopping mall."
Advanced Usage:
In financial discussions, you might encounter terms like "syndicated loan," which is similar to loan participation but typically involves more formal agreements and larger groups of lenders.
Word Variants:
There aren't many direct variants of "loan participation," but you might come across related terms like: - Participating loan: A specific loan where banks share the earnings from the loan. - Loan syndication: The process of arranging a loan that involves multiple lenders.
Different Meaning:
While "loan participation" specifically refers to shared loans among banks, the word "participation" on its own can refer to being involved in or taking part in an activity, such as "participation in a study."
Synonyms:
- Loan syndication (though this can imply a slightly different process) - Shared loan - Joint loan
Idioms:
There's no specific idiom directly associated with "loan participation," but you might hear phrases like "going in together" when referring to sharing resources or responsibilities in a general sense.
Phrasal Verb:
Again, "loan participation" doesn't have a direct phrasal verb, but if you want to express the idea of sharing a resource, you might use: - "Pool together" – to combine resources or efforts.