N
The Daily Insight Hub

What is credit in merchant banking?

Author

Isabella Turner

Updated on February 08, 2026

Financial institutions and banks, government agencies and underwriters. Preparing loan application for financial assistance from term lenders/financial institutions/banks and monitoring their progress including the pre-sanction negotiations.

What are the functions of merchant bankers?

Functions of Merchant Bankers

  • The basic function of merchant banker or investment banker is marketing of corporate and other securities.
  • Project promotion services.
  • Project finance.
  • Management and marketing of new issues.
  • Underwriting of new issues.
  • Syndication of credit.
  • Leasing services.
  • Corporate advisory services.

What services are provided by merchant bankers?

The services provided by Merchant Bankers include:

  • Project counseling.
  • Market survey and forecasting.
  • Estimating the amount of funds required.
  • Raising funds from capital market.
  • Raising of funds through new instruments.
  • Bought out deals.
  • OTC market operations.
  • Mergers and amalgamations.

What is the role of merchant banker?

Merchant banks help in processing loan applications for short and long-term credit from financial institutions. They provide these services by estimating total costs involved, developing a financial plan for the entire project, as well as adopting a loan application for commercial lenders.

What is the main role of merchant banker?

What are the functions of a merchant banker?

Merchant bankers provide specialised services in preparation of project, loan applications for raising short-term as well as long-term credit from various banks and financial institutions for financing the project or meeting the working capital requirements. They also manage Euro-Issues and help in raising funds abroad.

How does the bank play in a loan syndication deal?

Can someone people explain the roles that the bank play in each of these titles? How does fees get pay out to each of these roles? And, which one is the most important role?

Which is the main task of credit syndication?

Credit syndication also known as credit procurement and project finance services. The main task involved in credit syndication is to raise to rupee and foreign currency loans with the banks and financial institutions both in India and abroad. It also arranges the bridge finance and the resources for cost escalations or cost Overruns.

What can merchant banks do for Indian entrepreneurs?

Sometimes, merchant banks also encourage and guide Indian entrepreneurs to make investment in Indian projects in India and joint ventures overseas by offering all possible help in project appraisal and implementation. Other Services in the field of project counselling may also include: