A syndication/ syndicate (loan syndication) is a group of financial institutions (e.g., banks) that “collectively” lend money (a loan) to a single borrower or provide financing to a single project, etc., that is, under a single credit facility agreement. For example, a borrower may not be able to get a large-volume loan from a single bank. Therefore, it resorts to a group of banks, which can collectively contribute to the loan at the same time, as one lender. The arrangement involves a lead bank or syndicate agent appointed by the group (the syndicate) to look after all the issues/ affairs pertaining to the transaction.

On the other hand, a consortium is formed by multiple institutions in order to pool resources (usually monetary resources, expertise, etc) toward a common interest. In order to spread out the burden amongst member institution, a consortium of entities– e.g., investment banks, institutional investors, hedge funds, etc.– jointly contribute to a common objective/ project to the benefit of all members. This usually entails common ownership, cooperation, as well as pooling of resources.