If you are looking for a small amount of loan and for a short period of time, you can opt for bridgingloans. Such loans are extremely convenient for people requiring short money for a short while. Due to its convenience it has gained huge popularity, especially in the last couple of years after being hit by economic crisis. Everyday people are struggling for their sustenance and in most cases they are unable to make both ends meet. Bridging Loans are targeting this segment and have garnered a special niche for itself.

Advantages of Bridging Loans

People requiring a small amount of money usually resort to such loans. The mamimum term period of a bridging loan is a month. However, this period can be extended with additional charges. These loans do not require any security or verification of documents which are in most cases absent. It is helpful for people who have exhausted all other avenues of borrowings and require the money for daily sustenance. You can cover all your daily expenses and it can get you going till your next salary. So lead a tension free life and enjoy the simple pleasures of life.

Disadvantages of Bridging Loans

As the loans can be obtained within a day, they have a very steep interest rate, which is almost 25% daily and 900% annually. So, Bridging Loans become expensive affairs in the long run. Also, the financial regulatory bodies do not encourage such borrowings and other financial institutions like banks may decline a loan in the future for a bridging loan applicant. The financial institutions frown up the steep interest rate and they believe this is an unnecessary financial burden on the middle class. In case of default payments, they can harass the borrowers to reclaim the money.

Procedure of loan payments

You can receive Bridging Loans within an hour. You require a bank account and would have to fill in an application form. You would have to wait for sometime and the money can be credited to your account. You are eligible for this loan if you have a bank account and are over 18 years. If you require emergency money and do not want to borrow it from friends or family, you can resort to this loan. After the economic crisis, more and more people are resorting to this loan as they are in dire financial crunch.

Suitability of Bridging Loans

As the interest rates are pretty high you would have to judge your financial status to ascertain if you can repay the loan. In case of dire emergency only should you opt for this loan, as even the financial bodies discourage from using. Remember to use money wisely and save for the hard days that might be around the corner. Therefore, use every penny wisely and utilize your income to the optimum level, as the burden of a loan will further eat up into your income. Supplement your income and if possible take up another vocation to repay off the loan.