Definition of loan participation

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TeachMeFinance.com - explain loan participation



loan participation -- (1) the buying of portions of outstanding loans by investors, who then participate on a pro rata basis in collecting interest and principal payments. (2) the sharing by two or more lenders in the ownership of a loan or package of loans.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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