Loan Origination
Private Credit glossary · Private Credit Fundamentals
Definition
Sourcing, structuring, underwriting, documenting, and funding a loan directly with a borrower (as opposed to buying syndicated loans in the secondary market).
Loan Origination in plain English
Loan origination is the entire hands-on process of creating a brand-new loan directly with a borrower — finding the deal, designing its terms, checking whether the borrower can actually repay ('underwriting'), writing the legal paperwork, and finally handing over the money. The key contrast is with the alternative: buying a slice of an existing loan that someone else already made and is now reselling in the market. It's the difference between baking your own cake from scratch, knowing exactly what went into it, versus buying a pre-made slice off a shelf — originating means you control the recipe and know the borrower firsthand.
Practice Loan Origination
Related Private Credit terms
Private Credit practice questions · Private Credit flashcards · Private Credit study guide