BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Bridge loans refer to
|
|
Loans granted to construction companies for construction of bridges
|
|
|
Loan granted to PWD for construction of bridges over rivers
|
|
|
Interim finance allowed by banks to their customers, pending disbursement of term loans by financial institutions
|
|
|
Loan granted to Railway for construction of bridges
|
Explanation:
Detailed explanation-1: -Definition: Bridge loan is a type of gap financing arrangement wherein the borrower can get access to short-term loans for meeting short-term liquidity requirements. Description: Bridge loans help in bridging the gap between short-term cash requirements and long-term loans.
Detailed explanation-2: -It is also known as gap financing, interim loan, swing loan etc. It is thus able to bridge the gap between the amount of finance needed and the amount of finance at hand.
There is 1 question to complete.