Business Terms and Jargon Explained

What is Loan Packaging

This is where a loans broker or officer acquires a number of loans from different sources to reach an amount totalling to the loan amount required .

E.g. a client wants to raise 5 million pounds. One lender may not want to take the whole risk and therefore a number of loans from different sources are gathered to reach the 5 million pounds figure.

There are rules and regulation on this that will need to be compiled with, that is why loan packages are best done through an intermediary, broker or the bank.

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Term created / updated 2006-12-21 14:05:38

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