participation loan

Definition of "participation loan"
  1. A type of loan where multiple lenders share the risk by each contributing a part of the loan amount
How to use "participation loan" in a sentence
  1. The bank decided to issue a participation loan to minimize their risk on the large commercial investment.
  2. With a participation loan, several small credit unions were able to offer a substantial mortgage.
  3. Through a participation loan, multiple institutions jointly provided the necessary funding for the construction project.

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