Private Finance is otherwise known as Bridge loans. The interest rates will be very high ranging from 18% to 50% per annum. These loans are given against properties. The Property value should cover minimum 3 times of the loan and the loan should be repayable within a short period say 60 days to 360 days.
In many cases the interest will be deducted upfront and the balance will be disbursed. It is advisable to avoid these loans unless the situation prevails.
|1||Secured Loan||Quick disbursement||High Risk|
|2||Obligation||Less Documentation||Very High Interest Rates|
|3||High Interest Rates||Non Payment yield to loss of property.|
|4||Short Term||Legal Hassles for delayed payment.|