BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Finance provided to bridge the gap between poor and the rich.
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Bridge financing begins at the end of the first loan and ends with the start of the second loan.
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Bridge financing ends at the start of the first loan and starts with the end of the second loan.
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Finance provided to bridge the gap between Rural and the Urban people.
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Detailed explanation-1: -Also known as interim financing, gap financing, or swing loans, bridge loans bridge the gap during times when financing is needed but not yet available.
Detailed explanation-2: -Description: Bridge loans help in bridging the gap between short-term cash requirements and long-term loans. These loans are normally extended for a period of 12 months.
Detailed explanation-3: -Conclusion. Bridge financing is the method of arranging finance to bridge short-term business requirements. These are normally employed to finance the business’s working capital needs or acquire tangible assets. It means any asset that can be touched and felt could be labeled a tangible one with a long-term valuation.
Detailed explanation-4: -What is a bridge loan? A bridge loan is a short-term loan used to bridge the gap between buying a home and selling your previous one. Sometimes you want to buy before you sell, meaning you don’t have the profit from the sale to apply to your new home’s down payment.