What is bridge loan
Bridge loan is a type of gap financing where the borrower can get access to liquid short-term loans for meeting short-term cash requirements before getting a more permanent source of funding.
As the name suggests, bridge loans help in bridging the gap between short-term cash requirements and long-term loans. It is called a bridge loan because it serves as a bridge between two periods of funding, the second one being the more permanent source of funding.
These are normally secured, short-term loans, backed by asset collateral like equity, debentures etc., typically having a tenure of 12 months. Since these are short-term loans, it comes with a high interest rate.
Lenders offer bridge loan options that are structured to meet individual / business needs - intended for improving short-term cash flow restrictions. The repayments are scheduled and structured to match your available cash flow.
Following is an overview of short term loans:
• You can apply for short term loans as an individual or a business
• Easy loan tenure up to one year
• Loans amount available depending on your needs and eligibility
• Attractive interest rates—depending on your credit history
• Easy and simplified documentation process
• Quick approvals and speedy disbursal
• No collateral or guarantor required – varies from lender to lender
• Easy loan payment options
• Tailor-made loans solutions across many categories
• Facility to apply online with most lenders with minimal documentation
Typically, lenders choose to have a look at your credit history before approving your loan application, and sanction your loan application only if you have a good credit rating. There are some private lenders that might offer bridge loans to those having bad credit. This could be an option for those looking for credit but are being turned down by conventional lenders due to their bad credit score and history.
Apply for Bridge Loan in India
If you are looking for a Bridge Loan and are unsure about how to apply, then CreditMantri can guide you. You can check your eligibility and apply for a loan by signing up with CreditMantri. It is quick, simple and above all, free.
CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender's credit criteria. Hence, the chances of your loan application getting approved is higher.
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