Bridge Loans in India: Temporary Financing for Property Transactions

Ans: Yes, it is possible to obtain a bridge loan even if you have an existing home loan.

Ans: Yes, borrowers typically have the option to repay the bridge loan early if they sell their existing property before the agreed-upon repayment period.

Ans: A bridge loan provides short-term financing to bridge the gap between acquiring a new property and selling an existing one. It leverages the value of the current property as collateral. Typically, these loans have higher interest rates and are repaid upon the sale of the property.

Ans: Bridge loans typically have a tenure of 6 to 12 months. Interest rates are higher compared to traditional loans, often ranging from 8% to 15% annually, reflecting the short-term and higher-risk nature of the financing. Rates can vary based on the lender and the borrower’s credit profile.

Ans: Banking and non-banking financial companies offer bridge loan in India.