loan participation

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Definitions from WordNet

Noun loan participation has 1 sense

participation loan, loan participation, participation financing - a loan that is shared by a group of banks that join to make a loan too big for any one of them alone
--₁ is a kind of loan

Definitions from the Web

Loan Participation

Description:

Loan participation refers to a financial arrangement where multiple lenders fund a loan together, sharing the risks and rewards associated with it. This practice allows lenders to spread their exposure and diversify their portfolios.

Sample sentences:

Several banks joined forces to provide a loan participation agreement to the small business.
The loan participation helped mitigate the risk for all involved lenders.
Investors can participate in loan participations to earn attractive returns.

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