Bridging Loan

A bridging loan is a short-term loan that is applicable for the purchase of all property types. As the name suggests, it “bridges” the gap between the time you need to pay the downpayment for your new property and the sale of your old property.

Let’s assume that you want to upgrade your property and have already signed the Sales and Purchase agreement. This means you’ll need to pay the downpayment in cash. But what happens if your savings are not enough and you’ve yet to receive the sales proceeds of your old property?

This is when you can get a bridging loan. You can use the cash to pay for the downpayment within a limited time. Additionally

Raffles Credit is one of the top licensed money lenders in Singapore with the best selection of loan packages for our clients. With more than a decade of experience, we continue to be committed to providing equal and easy access to financial services.

To provide some of the best loans for our clients, we offer unsecured loans of up to six times your monthly income with the lowest interest rates. With our fast approval process, we make it easier for anyone who needs financial assistance to apply.

Ethical lending is at the top of our core values and we adhere to the law in Singapore.

Best of all, we have been praised for being a financial agency that treats our clients with the utmost professionalism and exceptional customer service experience.

We take pride in our accomplishments and will continue to serve every foreigner, resident, and citizen of Singapore in good faith.

Honors & Achievements

2020 listed: top 10 licensed moneylenders in Singapore by Loan Advisor

2020 listed: top-performing legal moneylenders in Singapore by Top Brands

Reviews & Testimonials

Received excellent 5 stars from verified clients on Google Reviews

Praised as “professional, helpful, and friendly” by customers on Loan advisor

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

To avoid loan scams, you must verify if the moneylender you are dealing with is a licensed money lender registered with Singapore’s Ministry of Law.

Next, shop for the best loan plans by comparing the interest rates, tenure, and terms. Find the most favorable loan plan that will suit your budget and repayment capability.

Don’t forget to read reviews and feedback across different online review websites, such as Loan Advisor and Google Reviews.

There are several factors that determine how much you can borrow from us. If you are taking out a secured loan with us, you would be able to borrow any amount with us.

If you are applying for an unsecured loan with us, you’ll need to have a minimum income of S$2,000 for Singaporeans and Permanent Residents. For foreigners, they need to have a minimum income of S$3,000. 

You can borrow up to 6 times your monthly salary.  depending on several factors, such as your income. Additionally, bridging loans have a maximum loan tenure of up to 1 month only or until the property’s completion date

See table below for details:  

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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.

If the borrower fails to repay the loan on time, the late interest rate is capped at 4% per month for each month the loan is repaid late.

Additionally, all licensed moneylenders are only permitted to impose the following fees:

•  A late fee of up to S$60 per month of late repayment
• A processing fee of up to 10% of the principal of the loan when the loan is granted
• Legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.

The total interest rate and charges imposed by a moneylender in Singapore on any loans for foreigners, consisting of interest, late interest, upfront administrative, and late fee also cannot exceed an amount equivalent to the principal of the loan.

The application process at Raffles Credit is fast and efficient. You can expect to receive your loan within an hour or upon signing the loan contract. You will be contacted to come in for the signing of the contract.

 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. In this case, the financial institution will pay for the entire amount of your new property. With this type of bridging loan, you don’t have to pay for two loans at the same time.

Simultaneous Repayment Bridging Loan: You will have to pay off your new property and the bridging loan simultaneously. You have 12 months to complete the sale of your old property and start your loan repayment.

However, these types do not apply to licensed money lenders in Singapore.

Raffles Credit reserves its right to reject any borrower from using our loan services. However, we only do this if the borrower does not fulfill any of the requirements listed above.

Some common reasons include insufficient documentation, being unemployed or shouldering too many loans, and many more. For these reasons, we regretfully inform our would-be borrowers that we are unable to loan them an amount. 

However, should they rectify the reasons for the rejection, we would be able to help them with their loan applications.

We offer substantial business loans for small and medium enterprises planning to expand their services and expand their branches. We offer several types of business loans available to businesses in need of funds. The most common type of loans are secured loans, which require collateral, and unsecured loans, which do not require collateral. You can also consider applying for a temporary bridging loan, a government-assisted financial scheme offered to all business entities in Singapore.

There are also other types of loans that are offered by other lenders such as short term business loans, lines of credit, equipment financing and other loans available. Please visit us in our office in order to further discuss the type of business loan in Singapore that you need in order for your business to succeed.

You can call or apply from the comfort of your home at https://www.rafflescredit.com.sg/. You may also reach us at 6235 1788. Once your online application is confirmed, you will be asked to visit our office to customize your loan contract. You will receive your money on the same day as soon as your loan contract has been signed.