A Loan Participation Rate (LPR) is a financial term that refers to the percentage of a loan that is shared among multiple lenders. This arrangement allows banks and financial institutions to spread the risk associated with lending, making it easier to finance larger projects or loans. Each lender receives a portion of the interest payments based on their share of the loan. LPR is commonly used in various types of loans, including commercial real estate and corporate financing. By participating in a loan, lenders can diversify their portfolios and manage their exposure to potential defaults, while borrowers benefit from increased access to capital.