BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the time period for a Short term corporate loan?
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1 Year
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18 Months
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Both A and B
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None of the above
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Explanation:
Detailed explanation-1: -Financial institutions usually give short-term loans, generally for a period of 1-2 years.
Detailed explanation-2: -Bank debt, other than revolving credit facilities, generally takes two forms: Term Loan A – This layer of debt is typically amortized evenly over 5 to 7 years. Term Loan B – This layer of debt usually involves nominal amortization (repayment) over 5 to 8 years, with a large bullet payment in the last year.
Detailed explanation-3: -Short-term financing means taking out a loan to make a purchase, usually with a loan term of less than one year.
Detailed explanation-4: -A short term borrowing means borrowing of tenor up to but less than one year.
There is 1 question to complete.