Caveat loans, also known as bridging loans, are an excellent loan option when you need a good amount of money within a short period. Like any other loan alternative, you need to keep your fixed assets or real estate properties as mortgage and must repay within a specified deadline. The principal benefit of this loan is that the money lenders release the money in a very short time. So, in the case of monetary emergencies, these loans are useful.
Chief characteristics of bridging loans:
The chief points of these loans are as mentioned below:
- These are short-term loans.
- Quick repayment of such loans is a mandate. The time range may vary from one to five or six months (maximum a year).
- The loans are settled within a day after submitting the formal application.
- Validation of borrowers, such as loan history and others, is not done in most cases.
- Loans are offered by real properties like land, house, etc.
- After the loan is repaid (within the deadline), the property is duly returned to the borrower.
- Institutions like banks and finance companies generally don’t offer caveat loans as proper validation is not done in such cases, but they do not object to such loans as well.
How to apply for short-term caveat loans:
Applying for such loans is easy and straightforward. First, you need to find a good, reliable, authenticated caveat broker company. Once that is done, you can simply download the application form from the company website or, in many cases, fill up the form online itself. Then you need to scan and send a few like photographs, specimen signatures,s, etc., to the respective emails. Once the application process is done, the companies usually approve the loan amount within a few working hours. Here the consent form is important, and the companies may charge a nominal brokerage fee in most cases.
Relevant documents of real estate properties that are kept as mortgages along with their current market value must be sent to the lender. Depending on the total valuation, the loan amount is decided and sanctioned.
Risks involved with caveat loans:
Just like conventional loans, if in case the borrower fails to repay the money within the deadline, the money lender holds the right to his mortgage properties and can sell them or put it on auction to recover his or her loan amount. In most cases, the property’s real value may not be justified as moneylenders only aim to recover their loan amount and sell the property accordingly. Hence, in such loans, deadlines are to be taken seriously. The borrowers will be reminded several times about the loan payment and deadlines before the mortgage is sold or put for auction. But in most cases, when people need quick money, they are not reluctant to take the risk involved.
Why do you need caveat loans?
In the following scenarios, you may find these short-term loans exceptionally helpful:
- In case a monetary emergency or crisis takes place where you are in huge need of cash flow.
- In case you need to pay a sudden loan or overlooked taxation debt.
- In case you need to refurbish your home or commercial property on an urgent basis.
- Your business requires the immediate investment or sudden cash flow.
- You need to repay someone on an emergency basis.
- Caveat loans can help you achieve the personal development or development of your business that requires some immediate investment.
So, get these caveat loans when short of cash and bail yourself out of a financial mess.