Question

A short term loan given for a period of 2 weeks to 12 months, for a larger amount, to meet urgent credit needs of big companies, due to launching new businesses, or fresh issue of shares etc.

• A. Term loan
• B. Bridge loan
• C. Overdraft
• D. Personal loan

Answer 1

Answer:

B. Bridge loan

Bridge Loan - Swing Loan:

• A Bridge loan is a short term loan given for a period of 2 weeks to 12 months for a larger amount to meet urgent credit needs of big companies due to launching new businesses, fresh issue of shares etc.

• It is very expensive and bank charge high rate of interest.