Looking for an immediate loan? Know how to apply for Bridge Loan and its benefits
New Delhi | Jagran Business Desk: People often discuss car loans, personal loans, home loans etc, but have you ever heard of a 'Bridge Loan'? A bridge loan is a short-term loan and it is easily available in banks and agencies. Such loans usually have a higher rate of interest, that's why people avoid taking it. But, it has several benefits that can help you during a crisis. It is considered as the safest loan as its terms and conditions assure guarantee (Loan generally gets approved). The duration of this loan is shorter as compared to other loans. If someone needs a loan on an urgent basis, he or she can consider a bridge loan on priority. People often take this loan for the period between buying and selling the property. Because taking long duration EMI loan needs a lot of formalities and paperwork
How to get Bridge Loan:
Banks/finance companies provide bridge loans for short term needs. It can be taken for 12 to 24-month period. It depends on the organisation for how long it is loaning.
The loan application form has to be filled to get this loan. Key in the details in the form. Customers have to submit their income-related documents, identity card, address proof and photo.
Banks can give loans on new properties. It can ask you to keep the property as security. If the customer is unable to repay the loan, the bank confiscates the property.
Under the bridge loan, the customer can get 70 percent to 90 percent of the cost of the new property. However, this amount also depends on the income of the applicant.
How to make a repayment?
Customers can repay the loan amount by paying EMI. However, it has to be noted that the interest charged on a bridge loan is usually higher than a long-term home loan.
Posted By: Srishti Goel