Bridge Loans - Overview 2025
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.
SBI Bridge Loan
- Loan amount up to Rs.2 crore
- Tenure up to 2 years
- Low interest rate and processing fees
- No penalty for pre-payment
- Eligibility: Must be a resident Indian & Age should be between 18 and 70 years
Loan Tenure | Interest rate (p.a.) | Loan amount | Processing fee |
Up to 2 years | First year-9.90% p.a. onwardsSecond year-10.90% p.a. onwards | Min. – Rs.20 lakhMax. – Rs.2 crore | 0.35% of the loan amount + tax (Min. Rs.5,000) |
Piramal Capital & Housing Finance Bridge loan
- Loan for both new purchase and re-sale of residential property
- Co-applicant mandatory for availing the loan
- Loan repayment up to 2 years
- Maximum loan of 90% of the market value of existing house
- Eligibility: Salaried Individuals (both Self-employed professionals & non-professionals)
Loan tenure | Interest rate (p.a.) | Loan amount | Processing fee |
Up to 2 years | 9.65% p.a. onwards | Min. – Rs.20 lakhMax. – Rs.10 crore | Up to 3% of the loan amount + tax |
Akhshayaa Finance Bhaarath Ltd. Bridge loan
- Approved within 3 days
- Tenure can be as low as 1 day
- Can be availed against new loan sanction letter
- Eligibility: Property should have a clear title and must be in a prime area in Chennai Borrower must have guaranteed repayment source
Loan tenure | Interest rate (p.a.) | Loan amount | Processing fees |
Min. – 1 dayMax. – 60 days | Contact the ba | Min. – Rs.25 lakhMax. – Rs.10 crore | Check with Akshaya Finance Bhaarath |
Bank of Baroda Bridge loan
- Introduced for top-rated corporate clients
- Offered against expected equity flows or issues
- Also available against expected proceeds of global depository receipts/funds, or external commercial borrowings
- Tenure of up to 12 months
- Contact the bank for interest rates
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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