Personal Loan VS. Bridging Loan

If youbre currently considering applying for a loan, the chances are that youbve heard both the terms bpersonal loanb and bbridging loanb by now. Perhaps youbre looking at a bridging loan in place of an extensive mortgage, or as a stop-gag between two financial applications. Either way, the notion of a loan for a property has come up, and youbre having a hard time deciding what type of loan is best for you, especially when youbre debating the amount you need to borrow.

A bridging loan can be used for legal purposes, usually retaining to the purchase, repair, restoration, or investment in a property. They are a type of secured loan, wherein you need to provide substantial collateral to be able to receive the loan. Central Mortgages are partnered with first4commercial in regard to bridging loans, and the loans are available in a widespread financial range, with an APR starting from 0.45% per month to 2% per month.

Personal loans, on the other hand, donbt require the business or commercial requirements of a bridging loan. APR on personal loans is a little higher than bridging loans, ranging from 6.8% b 32.9%, with an average of 15.9%. This, of course, depends on how much you borrow. With Central Mortgages, you can borrow a secured loan of between B#5,000 and B#150,000, or an unsecured loan of up to B#10,000. Both types of loans have their own advantages, though a secured loan is similar to a bridging loan, and has similar requirements for applicants.