IDBI IBU may participate in Syndicated loans to the borrower/s i.e. corporation/s, a large project/s, or a sovereign government. A syndicated loan is financing offered by a syndicate (made up of a group of lenders) that work together to provide funds for a borrower. Syndicated loans involve large sums, which allows the risk to be spread out among several financial institutions to mitigate the risk in case the borrower defaults. The loan can involve a fixed amount of funds, a line of credit or a combination of the two.