A bridge loan comes in handy in situations where you are looking to buy a new property with the money earned by selling off an existing unit or property.
The term ‘bridge loan’ is something not many people are aware of. It is a type of gap financing arrangement which enables you to get-short term loans from banks. These loans help in bridging the gap between short-term loan requirements and long-term goals.
Most banks in the country offer bridge loans to applicants at a high rate of interest for a repayment period of 12 months. The loan is provided on the back of a collateral such as equity or debentures.
|Loan Tenure||Interest rate (p.a.)||Loan amount||Processing fee|
|Up to 2 years||First year-9.90% p.a. onwards
Second year-10.90% p.a. onwards
|Min. – Rs.20 lakh
Max. – Rs.2 crore
|0.35% of the loan amount + tax (Min. Rs.5,000)|
|Loan tenure||Interest rate (p.a.)||Loan amount||Processing fee|
|Up to 2 years||9.65% p.a. onwards||Min. – Rs.20 lakh
Max. – Rs.10 crore
|Up to 3% of the loan amount + tax|
|Loan tenure||Interest rate (p.a.)||Loan amount||Processing fees|
|Min. – 1 day
Max. – 60 days
|Contact the ba||Min. – Rs.25 lakh
Max. – Rs.10 crore
|Check with Akshaya Finance Bhaarath|
Though public sector banks offer bridge loans, the concept is yet to be fully explored in the country. If you require urgent financing for down-payment, you could check with the bank you have a long-standing relationship with, and see if they can offer you a good deal. You could also opt for a short-term personal loan if you’re sure to be able to pay it off soon.
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