Which of the following correctly defines a Bridge

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. It helps in bridging the gap between short-term cash requirements and long-term loans. It is typically prevalent in real estate and construction industry wherein a company may take a bridge loan till the long term funds are tied up for the project. These loans are normally extended for a period of 12 months at high rate of interest.