Want to apply for a bridging loan but are scared of the formalities. Well here are few advices for applying quick bridging loan. Quick bridging loan is a short-term financial arrangement provided to buy a commercial or residential property. It is availed to you when you are in need of purchase of property and simultaneously waiting for cash realization from the sale of another property. Generally, these loans come with competitive increased interest rate. Bridging loans have comparatively higher rate of interest. This is because they are risky for the lenders.
Documents
The lender in Quick bridging loan asks the borrower to furnish certain details like financial status, flow of income and value of the property. And, this detail is taken into account by the lender for determining various aspect of the loan deal.
Loan amount
Bridging loans are secured loans and for that you will have to place your property as security. The loan amount offered under bridging loans lies between ?1,00,000 and ?4,00,000. Depending on your circumstances and repayment abilities the loan amount can vary. The loan term for bridging loans arranged will range between one to twelve months
Security
In quick bridging loan, the property which is being sold or the property which is to be purchased, act as security in the loan deal. So, the borrower should try to make timely repayments; because failure or late repayments can put the asset on risk.
Here, a borrower needs to place his old property as collateral for the loaned amount. This collateral acts as a security on behalf of the borrower and the lender enjoys the right to repossess the property in the event of failure in repayment.
How to apply
You can opt for a quick bridging loan in a number of ways. You can access this loan from your nearest banks, lending societies, financial institutions or online. The lender in order to provide bridging loan asks the borrower to furnish certain details like financial status, flow of income and value of the property.
So for purchasing new property and making a big purchase bridging loan is a great boon. So now that all your queries of bridging loan are solved, just go ahead and apply for it.
