Bridging loans are the ones which help people in their hour of need. There can be many situations where a person may run out of money and would need financial assistance on urgent basis. This situation is faced when people are in a deal of selling or purchasing a real estate. At times, you plan to buy a new house after selling the old one but you come across a new home which resembles your dream home that you have always wished to buy but you have no finance to go for it. Then, these loans can help you to buy your dream house with little or almost no effort. You can buy the home without paying any thing at that time and once your old house is sold then you can repay the loan. Till then, you will have to pledge any of your old or existing property and will be supposed to pay interest rate only.
Moreover, if you plan to start a new business of your own and you are waiting for the investors to make investments, here again bridging loans will prove to be helpful. You can apply for these loans and can pay the interest rate until or unless you get the payment or investment form the investors. Once you get the investment, you can repay the loan. This shows that these loans are short term loans and a person has to pay high interest rates over these loans which are about 15%.
Benefits of the bridging loansdo not end here. Most of the people think that these loans are for residential or commercial purposes only but they are wrong. These loans can also be used for many other purposes like funding holidays, planning wedding parties, to pay unexpected bills and many other uses. These loans can be given to almost everyone whether employed or unemployed, with good credit rating or bad. It is due to the fact that these lenders are concerned with your real estate which you will pledge as security. So it can be said that these loans are useful for almost every other person.