Financial institutions in the country offer different types of financial services which mainly includes a loan to individuals, companies and businesses. There are so many types of loans, basically divided into categories like short term loans and long term loans.

Bridging loans are among short term loans and their key characteristics make them separate and unique from the rest of the financial services. There is a huge difference between bridging loans and other financial services which are further explained below. 

Bridging loans are short term loans that make lenders able to fulfil their short term financial needs.

Whereas, Other financial services are long term in nature to fulfil the long term financial needs of lenders. Both types of loans are used for different purposes and both have different characteristics to fulfil borrowers' needs and obligations. 

Here is a comparison between Bridging loans and other loans.    

The loan is a kind of finance that we borrow to bridging loan is short term that we make lenders fulfil their short term financial needs

There are so many types of loan that exist, basically divided into categories like short term loans and long term loans. Bridging loans are among short term loans and have characteristics that make them unique from the rest of loans.

• In Terms of Duration

Bridging loans are short term in nature mainly consist from three months to twenty-four months 

whereas, other loans are long term in nature and consist of one year to 20 years.

• In Terms of Interest Rate

Bridging a loan's interest rate is comparatively higher than other long term loans but their duration makes the interest burden quite feasible and easy.

Other financial loans have comparatively less interest rate but their long duration make them a little hectic and tiring.

• In Terms of Security

Bridging loans providers accept any type of property either land, building, house or commercial property as security.

Other financial loans do not accept any non-standard or uninhabitable property as security.

• In Terms of Flexibility

Bridging loans providers offer much relaxation and flexibility to the lenders in terms of eligibility criteria and repayment according to the individual, a company or businesses and the worth of property they secured for availing bridging loan services.

• Fast Processing

Bridging loans provide quick access to funds once a borrower applies for a loan there are more chances of receiving the loan. They are quicker to arrange than other types of loans.

The process begins when the lender applies for a loan after that approval is even quicker and hence the borrower is financed. Its application process generally takes five to 15 days for processing. 

Other financial loans take more time for processing, approval and financing.

• In Terms of Immediate Finance

In terms of flexibility, bridging loans are more flexible and acceptable. The amount depends on the worth and market value of the property and is immediately financed right after approval of the loan application.

• In Terms of Repayments

In terms of obligations, bridging loans are comparatively more effective than traditional loans. And have flexibility in terms of obligations, bridging loans make their borrowers easy about repayments, long and hectic time period of payments, complex scheduling process and long journey of finance. Exiting from the loan is easy..

While traditional loans are long term and a little hectic because of the lengthy process.

• In Terms of Financial Ease

 In terms of financial planning bridging loan rates and the time period as a combination are more acceptable and the borrower has more trust in it. Bridging loan providers even facilitates borrowers to meet their expenses and also helps businesses to fulfil their financial needs like payroll expenses, establishing a new plan, introducing a new product or targeting a new market.

Traditional loans require more time and short term needs can not be satisfied. Therefore, bridging loans are easily available and can be financed easily.