Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements?

Statement-I: Correct. In a syndicated loan, multiple banks/lenders jointly lend to one borrower, so the default risk is shared among them.
Statement-II: Incorrect. A syndicated loan may be structured either as a term loan (lump sum) or as a revolving credit facility/credit line.
Therefore: Statement-I is correct, but Statement-II is incorrect.