Personal Bridging Loan

To live a smooth life, the foremost requirement in today's world is the availability of finance

. Who wants to get trapped under the consequences of unforeseen expenses? I think no one! But still it is not in our hands to avoid any of these unexpected expenses. These unexpected expenditures can arise anytime. At this time we need some sort of support in the form of finance from outside.While going for any loan, a borrower is very much concerned about the interest rate at which he has to repay the loan. Like any other short term loan a personal bridging loan also carry a higher interest rate. But not to worry, these loans are interest only loans, which meant that you have to only pay interest till you get the sale proceedings to pay the principle amount.Actually, a personal bridging loan is a short term loan, which is made to meet the personal requirements of a borrower until he arranges finance for him. It helps a borrower to bridge the gaps between two transactions involve in a purchase arrangement i.e. sale of his old property and purchase of a new property. It is generally used to help those borrowers, who want to buy new property without selling the current one.

Finance is very much necessary in today's world for you to live your life smoothly. But sometimes some obstacles come into your way when you need to take financial support from outside. Imagine a situation when you come through an attractive proposal of buying new property or starting or expanding your business or some other personal need. You thought of selling your property but the time it will take to get you the money is too long. By that time the opportunity you are given may be taken by some other person.You can make use of personal bridging loan to meet any kind of expenditures. It can be for buying new property, purchasing vehicle, starting up new business, expanding the existing one or any other personal need. Personal bridging loan are basically meant to bridge the financial gap between the sale of your old existing property and purchase of a new one.

The amount that can be obtained through personal bridging loan is initially 100,000. However, depending on the circumstances of the borrower, the amount may go up to 400,000. Since this loan is short term loan, the repayment period provided is one year. Within the repayment period, the borrower should sell off his existing property and pay off the loan amount.Two types of bridging: open and closed. Open ended bridging is where the repayment source is known, but is not guaranteed. Whereas, closed bridging occurs when the long term finance is already in place, but the funds are not available within the required space of time.

by: roger jakson

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