Bridge Gap Loan
Purpose Temporary arrangement of financing on the project which, after completion of all formalities for regular loan facility, shall be adjusted/settled from regular loan.
Financing Ratio: Maximum 50% of the amount of regular loan under consideration.
Nature Non-revolving & non-renewable, however validity may be extended if required formalities for regular loan has not been completed.
Disbursement Partially or fully upon request of the borrower.
Principal Repayment Fully or partially from disbursement of the regular loan at least on pro-rata ratio basis or as agreed with the borrower.
Interest Repayment: On quarterly basis or on settlement of the principal loan amount.
Security: At least 125% coverage by the value of mortgaged collateral security or hypothecation charge over the assets of the project.
Tenure: Generally for three months period but where applicable, extendable up to maximum one year period.