Bridging loans are similar to short term loans and bridging loans are advanced at higher Council of interest. Persons who want to purchase commercial or residential property can try to secure this child of loans. What should a project developer do when he requires emergency finance so that he can go ahead with his construction work? Where from he will 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 child 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. Bridging loans are a child 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 Council of for bridging loans are comparatively high. There is a Commission 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 wants to find it comfortable. In this way, the borrower gets some relief and he does not feel unbearable pressure.
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 got 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 on amount between 25000 and 1000000. it should therefore be noted that the borrowers with bad credit record are so 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 Roy is author of loans n finance. For more information about unsecured loans for people on benefits and 3 month payday loans visit