participation loan
- noun
- /ˌpɑːrtɪsɪˈpeɪʃən loʊn/
- Specialized
:
préstamo sindicado
- The developer secured a participation loan from three regional banks to finance the new shopping center.
Examples
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Due to the project's size, the company needed a participation loan involving multiple lenders.
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A participation loan allowed the risk of lending to be spread among several financial institutions.
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The bank offered a participation loan to the startup.
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Many participation loans are structured to meet specific needs.
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The developer secured a participation loan from three regional banks to finance the new shopping center.
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Due to the project's size, the company needed a participation loan involving multiple lenders.
-
A participation loan allowed the risk of lending to be spread among several financial institutions.
Synonyms
A loan where several banks share money and risk because it is too large for one bank
An arrangement where several banks share a large loan to reduce risk
How Big
- Specialized
12
2.7
- Specialized
7
2.6
- Specialized
1
3.6
Surface Forms
Morphology
The phrase combines the transparent meanings of 'participation' (involvement) and 'loan' (borrowed money), so a B1 learner could infer it refers to a loan that involves multiple parties. However, the precise financial sense — that several banks jointly fund a single large loan — is a domain-specific institutional meaning not fully predictable from the constituents alone, so it is only partially transparent.
Etymology
The noun participation loan comes from the idea of participation, meaning many banks 'taking part' in a single loan. Imagine several lenders each holding a piece of the big loan so the money and the risk are shared, which is why it means a loan given by a group of banks.