Bridge loan's handling process: the borrower submits the loan application. Lending institutions examine and approve loan applications. Approved and signed the contract. One lending institution entrusts another institution to issue loans in advance. One lending institution issues loans, and the other institution takes them back. The borrower repays the loan on time.

Bridge loan, also known as bridge loan, means that financial institution A cannot operate due to temporary lack of funds after receiving the loan project, so it consults financial institution B and asks it to help allocate funds. After the funds of financial institution A are in place, B quits.

For B, this loan is the so-called bridge loan. In China, policy banks such as CDB/ Exim Bank/Agricultural Development Bank play the role of financial institution A, while commercial banks play the role of financial institution B. ..

In June, 20021,Guangzhou Local Financial Supervision Bureau informed that microfinance companies were required not to engage in "bridge loan" and "foreclosure loans" business, and their stocks were reduced and settled as soon as possible, and they were not allowed to issue housing mortgage loans directly or in disguise.

The key elements of bridge loan are a qualified buyer and a signed contract.

Generally speaking, lenders who issue mortgage loans for new houses will provide transitional financing as personal notes payable when the property is sold and settled.

However, if there is no buyer for the property you own and you want to sell it, most lenders will set a lien on the property, thus making bridge loan a secondary mortgage.

It should be noted that in bridge loan, lenders and borrowers should pay attention to the interest cost of loans, upfront expenses and the consequences of selling real estate for longer than expected.

Although bridge loan is short-term financing, the interest rate is high, and the cost from the front end is also high (usually higher than the loan interest rate with a term of only a few weeks or months). In fact, any secured loan is acceptable to the lender who can get the advance payment.

Therefore, if an individual holds stocks, bonds or insurance policies, it is best to apply for bridge loan with them as collateral.

In June, 20021,Guangzhou Local Financial Supervision Bureau informed that microfinance companies were required not to engage in "bridge loan" and "foreclosure loans" business, and their stocks were reduced and settled as soon as possible, and they were not allowed to issue housing mortgage loans directly or in disguise.