Bridging Loan

A bridging loan is a short-term loan generally used to finance the purchase of a new property. It gives you the funds you need to pay the downpayment for your new home while you wait to receive the sales proceeds of your old property.

Let’s assume that you are upgrading your property by purchasing a new one valued at S$1,000,000.

In this scenario, you’ve already paid the 5% downpayment in cash. However, you don’t have enough savings to pay for the next downpayment which is 20% of the purchase price because your old home is not yet sold. On top of all these, your home loan application is still pending approval.

You can take out a bridging loan to pay for the hefty 20% downpayment to secure your dream home.

Eligibility:

• At least 18 years old
• Must exercise the Option to Purchase (OTP)
• Minimum Income: 
  • Singaporeans or Permanent Residents: S$2,000
  • Foreigners: S$3,000

Requirements:

• A copy of your NRIC
• Copy of the OTP
• Proof of income and employment
• Proof of residence
• SingPass to log in to CPF, IRAS, and HDB websites

When borrowing a bridging loan, it is best to determine whether the principal loan amount will cover the amount you need.

Next, make sure that you’re dealing with a licensed money lender in Singapore. Check the complete list of money lenders on Singapore’s Ministry of Law website to avoid loan scams.

Before you commit to a loan plan, you need to check and compare the interest rates and terms. Find the one that suits your needs and repayment capability. Lastly, you may also need to read customer reviews and feedback from Loan Advisor and Google Reviews to find reliable and trustworthy money lenders.

If you’re applying for a secured loan with us, you will be able to borrow any amount.

But for unsecured loans, such as a bridging loan, you can borrow up to six months’ worth of your income. Depending on your assessment and requirements, we always give the best optimal amount of loans to our clients.

Please refer to the table below:

Under the Ministry of Law, the maximum interest rate moneylenders in Singapore can charge is 4% per month. This cap applies regardless of the borrower’s income and whether the loan is a secure or unsecured one. You can read more about the bridging loan interest rate here.

Additionally, all licensed moneylenders can only impose the following fees:

• A late fee of up to S$60 per month of late repayment
• A late interest rate of up to 4% per month for each month the loan is repaid late.
• A processing fee of up to 10% of the principal of the loan when the loan is granted

Bugis Credit’s loan application process is quick and straightforward. Your application will be processed within an hour of applying for a loan online or calling from home with our team, and you’ll get your cash as soon as the agreement has been signed!

Borrowing an instant loan from Bugis Credit is the perfect way to handle your financial obligations. We make sure to give you immediate assistance and offer low interest in as short an hour with our fast application process which makes it easy for both of us!

We are proud to offer you a variety of competitive loan plans that adhere to the Moneylenders Act. We offer unsecured loans of up 6 times your monthly income at low interest rates between 1 and 4%. Best of all, we only impose permitted fees, and interest and make sure our plan is customized accordingly for your financial needs.

Simply apply online or call, then schedule an appointment where we will discuss all the details so that when everything has been agreed upon you can have access to your money on-the-spot.

There are two main types of bridging loans on the market:

• Capitalized Interest Bridging Loan: You will need to repay the loan once your old property is sold.
• Simultaneous Repayment Bridging Loan: You will have to pay off your new property and the bridging loan simultaneously.

However, these types of bridging loans are not applicable when borrowing from a licensed moneylender in Singapore. You can find out more on the best available bridging loan in Singapore.

You can contact us at 6345-9123 or come visit us at our office to make the payments and inform us of your early settlement.

Do tell us about your plans for the early settlement, so that we can come to an agreement with you for any discounts on your loans.

For Bugis Credit’s bridging loan, the repayment period is up to 1 month only or until the property’s completion date.

With so many moneylenders offering these loan services, it is always important to be cautious when looking for a loan. It is a must to check all the certificates and license information of the moneylender before taking out a loan with them. This is to avoid getting trapped by loan sharks, licensed moneylenders operate under strict compliance with the Ministry of Law.

For those who are planning to apply for loans, it is your due obligation to ensure that the moneylender you are taking out a business loan is a licensed moneylender. Licensed moneylenders are tasked to operate by following the rules mandated under the Singapore Ministry of Law.

You can verify a moneylender’s credentials by checking this list by the Ministry of Law.  Licensed moneylenders are given permission to operate under strict guidelines, so it is always the best idea to verify the credibility of the moneylender that you are sending your loan application to.

With the advent of the internet, we offer an easy application service by filling out the application form on our site. Your application will be then evaluated by our best team of financial advisors and respective loan officers. After careful evaluation, we will immediately give you a call to arrange a meeting down at our office.

Upon the meeting, we will explain all the needed information regarding the loan contract and will ask you for the necessary requirements and documents. Upon approval, you will be asked to sign the necessary documents and loan agreement, and cash will be handed to you on the spot.

Rest assured that we value the safety and privacy of our clients, we have a professional team of loan officers to assist you right from the start of your loan application.