M.D.

COLLEGE

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LOAN SYNDICATION

UNIVERSITY OF MUMBAI
PROJECT ON
ROLE OF CREDIT RATING AGENCY IN LOAN SYNDICATION
Bachelor of Commerce
Financial Markets
Semester VI
(2015-2016)

Submitted
In partial Fulfillment of the requirement for the
Award of Degree of Bachelor of Commerce Financial Market.

Submitted By,
RAKESH BHAGVAN KADAM
Roll No. - 19

Under Guidance,
PROF. SHAKTI CHAVAN SIR
MAHARSHI DAYANAND COLLEGE OF ARTS, SCIENCE &
COMMERCE PAREL, MUMBAI 400 012.

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MAHARSHI DAYANAND COLLEGE

OF ARTS, SCIENCE & COMMERCE
PAREL, MUMBAI 400 012.

CERTIFICATE
This is to certify that MR. RAKESH BHAGVAN KADAM of
B.Com (Financial Markets) Semester VI (2015-2016) has successfully
completed the project on ROLE OF CREDIT RATING AGENCY
IN LOAN SYNDICATION under the guidance of PROF. SHAKTI
CHAVAN SIR

Course Coordinator

Project Guide/Internal Examiner

Principal

External Examiner

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DECLARATION
I am MR. RAKESH BHAGVAN KADAM. The student of B. com
(Financial Markets) Semester VI (2015-2016) hereby declares that I have
completed the Project on ROLE OF CREDIT RATING AGENCY IN
LOAN SYNDICATION. The information submitted is true and original
to the best of my knowledge.

Signature of student
Name of Student
MR. RAKESH BHAGVAN KADAM
Roll No. 19

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ACKNOWLEDGEMENT
The college, the faculty, the classmates & the atmosphere, in the
college were all the favorable contributory factors right from the point
when the topic was to be selected till the final copy was prepared. It
was a very enriching experience throughout the contribution from the
following individuals in the form in which it appears today. We feel
privileged to take this opportunity to put on record my gratitude
towards them.
PROF. KUNAL SONI SIR made sure that the resource was made
available in time & also for immediate advice & guidance throughout
making this project. The principal of our college DR. T.P.GHULE
and our Vice-Principal Mrs. SANJEEVANI PHATAK has always
been inspiring & driving force. We are thankful to Mr. SANTOSH
SHINDE associated with administration part of Financial Markets &
Banking & Insurance section has been very helpful in making the
infrastructure available for data entry.

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EXECUTIVE SUMMARY
A loan is a type of debt. Like all debt instruments, a loan entails the
redistribution of financial assets over time, between the lender and the
borrower.
In a loan, the borrower initially receives or borrows an amount of
money, called the principal, from the lender, and is obligated to pay back
or repay an equal amount of money to the lender at a later time.
Typically, the money is paid back in regular installments, or partial
repayments; in an annuity, each installment is the same amount. The
loan is generally provided at a cost, referred to as interest on the debt.
Acting as a provider of loans is one of the principal tasks for financial
institutions. For other institutions, issuing of debt contracts such as
bonds is a typical source of funding.
Lending in its most general sense is the temporary giving of money or
property to another person with the expectation that it will be repaid. In
a business and financial context, lending includes many different types
of commercial loans:

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LOAN SYNDICATION

Bank financing for small business start-up and working capital.

Asset financing for equipment and machinery.

Mortgages.

Credit card financing.

Personal (unsecured) loans.

Loans syndication is also one of the type of loan given by the group of
banks coming together to finance a very huge project for infrastructure
development or some mergers or acquisitions by the corporates.

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LOAN SYNDICATION

INDEX
CHAPTER
NO

CONTENTS

PAGE NO

INTRODUCTION

1-3

LOAN SYNDICATION

4-5

3
4

5
6

TYPES OF LOANS SYNDICATION

CREDIT INSRUMENT OF LOAN
SYNDICATION
CREDIT RATING AGENCY
NEED FOR LOAN SYNDICATION

6-8
9-10

11-18
19-21

STAGES AND PROCESS OF LOAN

SYNDICATION

22-24

PARTICIPANTS OF LOAN SYNDICATION

25-27

SIGANIFICANCE OF LOAN
SYNDICATION

28-30

10

DOCUMENTATION

31-33

11

SYNDICATION LOAN TRANSFER

34-40

12

41-42
TOP 20 BANKS
PARTICIPATING IN LOAN SYNDICATION

13
14

CONCLUSION
BIBILIOGRAPHY

43-44
45

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