• Statement-I: This statement is correct. Syndicated lending, by definition, involves multiple lenders pooling resources to provide a loan to a single borrower. This inherently distributes the risk of default, as no single lender bears the entire burden if the borrower fails to repay.

• Statement II: This statement is incorrect. Syndicated loans can take various forms, including both fixed-amount term loans (lump sum) and revolving credit facilities (credit lines). 

Therefore, the correct option is C: Statement I is correct, but Statement II is incorrect.

Note: UPSC dropped this question from the final answer key.