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Get a syndicated business loan

A loan that is arranged, structured, and administered by multiple commercial banks is a Syndicated Loan. This type of loan is offered to a large borrower, so bolster and expand your business with a syndicated business loan easily up to Rs 50 crore. When you avail of this loan, you don’t have to provide equity for the business. The last year has witnessed a significant reduction in the interest rate of business loans.

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How to get a syndicated business loan?

You need a large sum of capital and we are here to serve you in the best possible manner. Vakilsearch will help you reach the best group of banks in 3 simple steps

You Still Own 100%

We will collect all the required information from you

Step 1

Professional Assistance

Our professionals will prepare a project report for your business

Step 2

Various Types of Loans

We will submit your proposal and negotiate for the best interest rate

Step 3


What is a Syndicated Business Loan?

A syndicated loan refers to an arrangement between two or more banks to provide credit facilities or loans for business. This is done by the banks as a syndicate, using common debt documents. For SMEs, this is the most promising route to avail of any type of credit facility, whether a term loan, working capital facility, bank guarantee, or any loan against property.

What are the benefits of a syndicated loan?

You Still Own 100%

A syndicated loan is a good way for a business to get the money it needs to grow while allowing the entrepreneurs to maintain 100% ownership. Do note, however, that these loans for business startups must be backed up by collateral. Businesses with meager assets would not be able to apply for loans for business startups.

Professional Assistance

Professional service providers such as Vakilsearch are there to help you make the best decision. Our professionals will prepare a project report for your business by converting your raw data into presentable documents after fully understanding your needs. Once this is done, you may either opt for our advisory package (recommended), which means that we will only advise while you follow up with the bank, or for our fund-raising service, under which we will have a vendor assist you in every step you take. You can also avail of our loan for a business calculator any time you want and make the best decision to suit your unique needs.

Gives access to Various Types Of Loans

Syndicated loans for a business can give you access to various types of bank loan for business interest rate, that is comparatively cheaper. Banks offer facilities designed to meet the needs of almost any kind of funding requirement, be it working capital funds, capital expenditure, business acquisition, bridge or short-term funding, unsecured lending, and so on.

What are the stages involved in a syndicated business loan process?

There are 3 stages in the process of granting syndicated loans for business-

Stage 1:

This stage is also called the pre-mandate stage and is initiated at the behest of the borrower. Here, the borrower either speaks to a single lender or invites competitive bids from several lenders. He then chooses the lead lender to provide him a loan for a business interest rate he is comfortable with. The lead bank will start the appraisal process for loans for business startups by assessing the need of the borrower. It will also design the necessary loan structure and develop the appropriate credit proposal.

Stage 2:

In this stage, the lead lender starts the process of selling the loans for business by preparing a term sheet, information memorandum, and the necessary legal documentation. It will then approach other banks for participation. The business loan will be disbursed after the loan contract gets finalized.

Stage 3

This stage involves the process of monitoring utilizing an escrow account, in which the borrower will be asked to deposit the revenue. An agent will ensure timely repayment of the loan, before making any other payments. The agent will also manage the regular operations of the loan facility in the post-closure stage.

What are the steps associated with the Syndicated Loan Process & Packages of Vakilsearch?

Basic Package (Recommended) Includes Steps 1 & 2

Preliminary Consultation

Our professionals will understand your requirements and suggest solutions based on the information provided. If you are interested in going ahead, we will finalize the scope of work and terms of the mandate.

Building the Proposal

In this crucial step in the process, a seasoned industry veteran will prepare projections and a detailed project report. You will also need to provide various documents at this point, such as annual reports, income tax returns, bank statements, and board resolutions. All the raw data will be converted into the format understood by the lenders.

Advisory Package Includes Steps 1, 2 & 3

Advisory for Application

We will advise you on the banks that provide loans for business. This will be based on (i) which banks are bullish for the sector, (ii) which bank will consider the security, (iii) past relations, (iv) success rates, (v) speed of approvals, (vi) approval hierarchy and many more. It is important to systematically approach lenders in phases with a maximum of five banks in each phase. It is this step that decides the success of the proposal. We will apply and, based on the feedback received, would fine-tune the proposal.

Complete Package Includes All the Steps

Follow-up & In-principal approval

Constant follow-up with each lender is very important. As every bank that provides loans for business has its own set of guidelines to evaluate any given proposal, each will have a separate set of queries to be resolved. At this stage, there will be multiple communications between bankers, syndicators, and clients.

Negotiation Terms & Sanction Letter

On securing in-principal approval, negotiations with bankers would take place in terms of deals such as pricing (interest rates & fees), tenor, repayment schedule, moratorium period, covenants, and so on. The sanction letter would be received from the bank at this stage.

Documentation & Disbursement

Before the funds are released, certain compliances need to be fulfilled. For providing loans for a business, the bank would require NoCs from various stakeholders, drawdown requests, unqualified financial/legal due diligence certificates, compliance with all CPs to the loans, and so on. Simultaneously, the drafts of all the loan documents would generally be circulated for review to all the parties. After all the documents are vetted and signed, the funds will be released as loans for business startups.

syndicated loan documents

Why Vakilsearch?

Access to Experts

We connect you to verified expert lawyers, who will work on your documents until you're completely happy. You can track the progress on our platform at all times.

9.1 Customer Score

Clients are delighted with our service! They have consistently rated us highly because of our focus on simplifying legal requirements and providing regular updates.

300+ Strong Team

Our team of experienced business advisors are just a phone call away, should you have any queries about the process. Our team will ensure that your interaction with professionals is smooth and seamless.

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