DOI: 10.36347/sjebm.2015.v02i08.001

Pages: 786-792

Loan syndication is potent source of funding for business organizations and also an important revenue earner for banks. However its arrangement and consummation is forth with series of problems such as, lengthy time in appraisal of the credit risk, delays in packaging of loans, dilatory behaviour of the borrowers, high rates and other charges as well as the loan duration. These problems could be addressed by creating special loan syndication units, sound credit appraisal, out sourcing, intensification on-site and off-site inspections, and the banks helping a prospective loan request in an acceptable form.