What should a project developer do when he requires
emergency finance so that he can go ahead with his construction work? Where
from will he secure the fund just to complete rest part of the job he has
undertaken? Anyone may face the same type of problem if he likes to purchase
some property for commercial or residential purposes. The required amount is
not small although its necessity is unavoidable. This kind of people should
approach to secure bridging loans. The financial market has introduced bridging
loans to assist these persons so that they can finish the constructional
project or can buy their desired property.
are a kind of short term loans. Bridging loans are to support the
loan-seekers financially so long he finds it possible to acquire finance from
any alternative source or so long he disposes of his age-old property at his
expected price. Bridging loans are short term loans, and, hence, interest rates
for bridging loans are comparatively high. There is a provision in favor of the
borrower. He is allowed to deposit only the interest of the loan amount for a
given period. He can pay off the principal amount afterwards when he will find
it comfortable. In this way, the borrower gets some relief and he does not feel
The amount of loan that the loan-seeker finally receives is assessed on the
basis of worth of his property. Bridging loans are granted if the borrower can
produce such documents which will support that he owns
commercial/semi-commercial or residential property. It is possible that he has
used his property as collateral for earlier loans. There are provisions for
second tier bridging loans. It is very important to note that the borrower must
possess record of healthy credit. The financial stability of the borrower and
equity in collateral are other factors that determine the amount of the payable
loans. The borrower can secure an amount between £25000 and £1000000.
It should also be noted that the borrowers with bad credit record are also
eligible for bridging loans as the finance is granted against security.
There are plenty of lenders and lending agencies. The borrower should be careful
to learn the terms and conditions provided by the lenders.
Addy is an
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