singlelending

Singlelending is a term that refers to a loan provided by a single financial institution to a borrower. This contrasts with syndicated loans, where multiple lenders participate in providing the funds. In a singlelending arrangement, one bank or credit union assesses the borrower's creditworthiness and enters into a loan agreement with them. The entire loan amount, including principal, interest, and fees, is managed by this sole lender.

The process typically involves the borrower applying for a loan, and the single lender conducting due diligence, including reviewing credit history, income, and collateral. If approved, the lender disburses the funds and manages all aspects of the loan, such as repayment schedules, interest calculations, and any necessary modifications. This can offer a more streamlined and direct experience for the borrower, as they only need to interact with one point of contact.

Singlelending is common for personal loans, mortgages, small business loans, and some corporate financing where the loan amount is within the capacity and risk appetite of a single lender. The terms and conditions are negotiated directly between the borrower and the originating institution. The lender bears the full risk of default, which influences their decision-making process regarding loan approval and interest rates. This structure simplifies the administrative aspects of the loan for both parties compared to the complexities of coordinating multiple lenders.