International syndicated loan means that the borrower authorizes the lead bank (or management bank) to organize a syndicate to provide loans to it in the form of power of attorney. Under the organization of the lead bank, each participating bank directly signs a loan agreement with the borrower and issues loans to the borrower in accordance with the unified conditions stipulated in the * * * agreement. There is a direct creditor-debtor relationship between the participating banks and the borrowers. In indirect international syndicated loans, the lead bank first provides or promises to provide loans to borrowers, and then the lead bank transfers the loans it has provided or will provide to participating banks in a certain way. Generally speaking, there is no direct creditor-debtor relationship between participating banks and borrowers. In some cases, borrowers don't even know the existence of participating banks. An international syndicate led by one or more banks and attended by many banks provides loans to a borrower according to the internal division of labor and the proportion of capital contribution. The scale of the syndicate is determined according to the project financing scale. Syndicate members range from a few to dozens.

Syndicated loans are divided into direct loans and indirect loans. The former is the loan issued, recovered and managed by the member banks in the syndicate. The latter is a loan in which the lead bank resells the right to participate in the loan (that is, the loan share) to other member banks, and the loan management is entirely undertaken by the lead bank.