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    Question

    Which of the following best describes a Bridge

    Loan?
    A An infrastructure loan Correct Answer Incorrect Answer
    B Gap funding loan Correct Answer Incorrect Answer
    C Unsecured long term loan Correct Answer Incorrect Answer
    D A loan in form of a grant Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    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. 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. These loans are provided at exorbitant rate of interest and are normally backed by an asset collateral like equity, debentures etc.

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