Consortium Finance in India
Explore consortium financing for large corporate borrowers, working capital, capital expenditure, infrastructure and major business projects. Multiple financial institutions may jointly finance a single borrower under an agreed lending structure.
LoansBazaar India — Compare. Apply. Get Financial Assistance.
Core Structural Parameters
Consortium finance terms depend on the borrower, project requirements, participating lenders and the applicable credit framework.
Minimum Loan Size
Generally formed for large exposures exceeding ₹50 Crore to ₹100 Crore.
Under the supplied parameters, minimum shares are set at 10% for projects up to ₹1,500 Crore, and 5% or ₹150 Crore above that.
Maximum Loan Size
No universal regulatory ceiling is specified in the supplied overview. The amount depends on project cost, working-capital needs and each lender's Large Exposure Framework (LEF) limits.
Loan Tenure
Working Capital (CC / WCDL): 12 months, subject to annual renewal/review.
Term / Project Loans: 5 to 20 years, including a moratorium where applicable.
1. Commercial Banks — Public & Private
Commercial banks may act as anchor or lead lenders in large consortium financing arrangements.
| Bank / Institution | Minimum – Maximum Exposure | Loan Tenure | Indicative Interest Rate (p.a.) | Processing & Lead Fees |
|---|---|---|---|---|
| State Bank of India (PSU Anchor) | ₹10 Cr minimum share; max up to prudential LEF caps | 1 yr (WC) / Up to 15–20 yrs (Term) | 8.40% – 10.25% (MCLR-linked + risk spread) | 0.25% – 0.75% + GST (lead management fee extra) |
| Punjab National Bank / Bank of Baroda | ₹10 Cr min share; max per project viability | 1 yr (WC) / Up to 15 yrs (Term) | 8.50% – 10.50% | 0.25% – 0.50% (as per consortium joint decision) |
| HDFC Bank / ICICI Bank | ₹15 Cr min share; max hundreds of crores | 1 yr (WC) / Up to 12–15 yrs (Term) | 8.60% – 11.00% (Rating & structure dependent) | 0.50% – 1.00% upfront processing fee |
| Axis Bank | ₹10 Cr min share; max per consortium limit | 1 yr (WC) / Up to 12 yrs (Term) | 8.75% – 11.25% | 0.50% – 1.00% + legal/techno-economic fees |
2. NBFCs & Infrastructure Financiers
Infrastructure financiers may focus on power, energy and infrastructure, while diversified NBFCs may consider eligible corporate and structured financing.
| Institution Name | Minimum – Maximum Exposure | Loan Tenure | Indicative Interest Rate (p.a.) | Processing & Syndication Fees |
|---|---|---|---|---|
| PFC / REC Limited (Infra NBFCs) | ₹25 Cr min share; max ₹1,000+ Cr | Up to 15–25 yrs (Power/Infra projects) | 8.75% – 10.75% | 0.50% – 1.00% upfront |
| Tata Capital | ₹5 Cr – ₹100 Cr+ | 3 to 7 yrs (Mid-market corporate term loans) | 10.50% – 13.50% | 1.00% – 1.50% of sanctioned limit |
| Bajaj Finance / Aditya Birla Finance | ₹5 Cr – ₹150 Cr+ | 1 to 7 yrs | 10.25% – 13.00% | 1.00% – 2.00% |
| L&T Finance | ₹10 Cr – ₹200 Cr+ | 3 to 10 yrs | 9.50% – 12.00% | 0.75% – 1.50% |
3. Small Finance Banks (SFBs)
Small Finance Banks may be considered for eligible lower-ticket business or MSME needs, subject to their exposure limits and willingness to participate in a particular consortium.
| SFB Name | Minimum – Maximum Exposure | Loan Tenure | Indicative Interest Rate (p.a.) | Processing Fee |
|---|---|---|---|---|
| AU Small Finance Bank | ₹3 Cr – ₹25 Cr (Subject to single-borrower cap) | 1 yr (WC) / Up to 7 yrs (Term) | 10.75% – 13.50% | 1.00% – 1.50% |
| Equitas Small Finance Bank | ₹2 Cr – ₹15 Cr | 1 to 5 yrs | 11.50% – 14.50% | 1.00% – 2.00% |
| Ujjivan Small Finance Bank | ₹1 Cr – ₹10 Cr | 1 to 5 yrs | 12.00% – 15.00% | 1.25% – 2.00% |
| Jana Small Finance Bank | ₹1 Cr – ₹10 Cr | 1 to 5 yrs | 12.50% – 15.50% | 1.50% – 2.00% |
Key Features of Consortium Financing in India
Lead Bank Coordination
A lead bank typically coordinates credit appraisal, negotiations and monitoring on behalf of consortium members.
Pari-Passu Security Charge
Collateral may be shared among lenders on agreed pari-passu terms, subject to security documents and applicable arrangements.
Common Documentation
A common loan agreement and inter-creditor documentation may set out terms, responsibilities and conditions.
Participation Shares
Minimum lender participation may depend on the transaction structure and applicable lender or regulatory requirements.
Credit Tracking
Joint monitoring, reporting and credit information sharing may support ongoing credit discipline.
Large Project Funding
Can be considered for eligible capital expenditure, corporate expansion, infrastructure and working-capital needs.
Consortium Finance Eligibility Criteria
🏢 Legal Entity & Financial Scale
- Public Limited Company, Private Limited Company, LLP or registered Partnership Firm, subject to lender criteria.
- May be considered where total banking exposure exceeds an individual bank's appetite or for large-scale projects.
- Audited financial statements and satisfactory banking conduct.
📈 Track Record & Project Viability
- Supplied criterion: minimum 3 consecutive years of profitable operations with audited financial statements.
- Satisfactory external credit rating where required, such as from CRISIL, ICRA or CARE.
- Project or business must pass the lead bank's required techno-economic viability assessment.
- Security, promoter contribution and repayment capacity must meet lender criteria.
Required Documents Checklist
📃 Constitutional & Legal
- Certificate of Incorporation
- MoA & AoA or Partnership Deed
- PAN and GST Registration certificates
💼 Financial & Tax
- Audited Balance Sheets and P&L for the past 3–5 years
- ITR filings
- Promoter Net Worth certificates
- Recent 12-month bank statements
🏗️ Project & Technical
- Detailed Project Report (DPR)
- Techno-Economic Viability (TEV) report
- Architectural and machinery cost quotations
🤝 Consortium Specific
- Formal Consortium Agreement
- Inter-se agreements among banks
- Power of Attorney for the Lead Member
- Common stock/book-debt statement
🌿 Clearances & Property
- Environmental clearances
- Land title deeds
- Non-encumbrance certificates
- Statutory government approvals
📌 Additional Documents
- Existing loan and charge details, where applicable
- Collateral valuation and security documents
- Any additional records requested by participating lenders
Explore LoansBazaar India Products & Finance Categories
Apply or enquire through LoansBazaar India for relevant finance categories. Eligibility and product availability depend on the lender and applicant profile.
🏠 Personal & Retail Finance
Personal Loan, Home Loan, Loan Against Property, Car Loan, Two-Wheeler Loan and Gold Loan.
🎓 Education Finance
Education Loan, Study Abroad Finance, College Funding and Education-related finance.
🏭 MSME & Business Finance
MSME Loan, Business Loan, Machinery Finance, Equipment Finance, Working Capital and Business Expansion.
🏢 Corporate & Large Business Finance
Consortium Finance, Corporate Term Loan, Project Finance, Structured Finance, Corporate Overdraft, Cash Credit and WCDL.
🧾 Specialised Finance
Invoice Finance, Bill Discounting, Supply Chain Finance, Startup Funding, Medical Finance and other specialised funding.
🌾 Agriculture & Rural Finance
Poultry, Fisheries, Livestock, Farm Equipment, Tractor, Warehouse, Cold Storage, Agri Infrastructure, Food Processing, Farmer Gold Loan, Rural Business, SHG and JLG Finance.
🏥 School, Hospital & Institutional Finance
School Funding, College Funding, School Infrastructure, School Bus, Hospital Finance, Medical Practice, Nursing Home, Pharmacy and Diagnostic Centre Finance.
🏛️ Government-Linked Finance
Explore eligible scheme-linked finance options subject to current programme conditions and lender participation.
⚙️ Industrial & Project Finance
Industrial Expansion, Plant & Machinery, Manufacturing Finance, Infrastructure and Capital Expenditure Finance.
Business Loan EMI Calculator
Calculate an estimated monthly EMI for a standard reducing-balance term loan.
Total Interest: ₹27,48,200
Total Repayment: ₹1,27,48,200
This calculator provides an estimate for a standard term loan. Actual consortium terms, fees, moratoriums and repayment schedules may differ. Working-capital facilities may use different interest calculations.
Open Full EMI Calculator →Frequently Asked Questions
What is the minimum and maximum consortium loan amount?
The supplied overview states that consortium finance is generally formed for large exposures exceeding ₹50 Crore to ₹100 Crore. Maximum funding depends on project cost, working-capital need and lender exposure limits.
What is the tenure for consortium finance?
The supplied parameters state 12 months for working capital, subject to annual renewal/review, and 5 to 20 years for term/project loans, including applicable moratorium.
Do all consortium lenders charge the same interest rate?
No. Each participating lender may set its rate and fees according to its benchmark, risk assessment, borrower profile and agreed terms.
What processing fees apply?
Processing and lead management fees depend on the lender, facility and consortium arrangement. Verify the final charges in writing before proceeding.
Does LoansBazaar India guarantee finance approval?
No. LoansBazaar India assists with finance enquiries and applications. Final approval and terms are determined by the relevant lender or participating lenders.
Planning a Corporate or Project Loan?
Explore suitable finance options and get assistance with your loan enquiry.