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||Eligibility||Processing fee|
|Up to 2 years||First year – 2.45% above 1-year MCLR||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||Eligibility||Processing fee|
|Up to 2 years||Not available||Min. – Rs.20 lakh Max. – Rs.10 crore||Salaried Individuals Self-employed professionals (SEP) Self-employed non-professionals (SENP)||Up to 3% of the loan amount + tax|
|Loan tenure||Interest rate (p.a.)||Loan amount||Eligibility||Processing fees|
|Min. – 1 day Max. – 60 days||Check with Akshaya Finance Bhaarath||Min. – Rs.25 lakh Max. – Rs.10 crore||Property should have a clear title and must be in a prime area in Chennai Borrower must have guaranteed repayment source||Check with Akshaya Finance Bhaarath|
Note: Check with the bank for interest rates and other fees and charges.
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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