Lack of fund has been one of the major problems militating against the progress and growth of our business organization. This is caused by a lot of factors such as low savings (vicious circle of poverty), ignorance of the public to invest, mismanagement etc. there are many ways of solving the problems of finance and providing adequate finance to our business organizations such as equity stock, savings, ploughing back profits, but for the purpose of this research, we have to pay attention to loan syndication.

This research will focus on the appraisal of the methods and ways through which Union Bank of Nigeria Plc source for fund in form of loan from a group of financial institutions such as commercial banks, merchant banks, insurance companies, development banks and financial institution like governments thrift societies friends. It will also focus on the different classes of loan notably, long-term loan, medium term loan, and short term loan. The classes of loan provided by the different types of financial institutions enumerated above will also be considered by Union Bank of Nigeria before using loan as a source of finance instead of other sources.

Similarity, it is also pertinent to treat the factors, which are considered by consortium of financial institutions before giving out loans to business organizations. The securities and interest rates treatment acceptable to the consortium will also be look into. Also, the reason why some financial institutions do not go into loan syndication will also be inquired into.

Before ending this research, it is important to study how the interest of the constitution is protected in the Union Bank of Nigeria as well as how the interest of each member of the consortium is protected within the group.

These points enumerated above when treated, Union Bank of Nigeria chooses to finance their projects and particularly loan syndication and we feel anybody who enjoys it.

Summarily, the research work will be grouped into five chapters. Chapter one will contain the introduction, sub-topics as background of study, statement of problem, objectives of study, significance of study and so on.

Chapter two contains the literature review. This chapter will give the detailed analysis of the topic. It is here that we state the meaning of the topic of the research different types of syndicated credit finance, the procedures for syndicating a loan etc.

Chapter three will cover the research methodology and techniques. The sources of data, the instrument of data of data collection and the place the data is located.

Chapter four, which is the data presentation and analysis will show the presentation of the data collected both in tables and charts, pie chart may also be used.

Finally, chapter five which summaries the other chapters. The findings recommendations and the conclusion will be contained in this chapter.

Having said much, this research study will be specifically limited to Union Bank of Nigeria Plc Onitsha Anambra State.

CHAPTER ONE

1.1 INTRODOUCTION OF THE STUDY

The velalive insufficiency of fund for capital investment is a common factor in every economy especially in developing counties of the world. In developing counties like Nigeria; the low level of capital investment manifest in high unemployment rates; low productivity and corresponding low standard of living for greater majority of the population.

Finding a solution to this problem of providing fund for capital investment has been a major pre-occupation of financial institutions in Nigeria. Beyond the traditional term loan; share offers; bonds and on; business organizations and financial institutions alike have sought out avenue to tackle the problem of insufficient fund for capital investment. One of the solutions they have come up with is syndicated load or multiple credit facilities , which is aimed at spreading risks and weakening the impact of restricting laws and regulation on lending by financial institutions .

Syndicate has been defined as an association of industrialist , or financial or banking consortium forced to carry out some industrial projects .

Accordingly, loan syndication is basically defined as an agreement between two or borrower with credit facility utilizing common loan documentation.