Short-term loans essentially work the same as medium- and long-term loans, with the only difference being a shorter repayment period, which is usually within one year. Though some lenders view a period of less than two years also as short-term.
Simply put, TDSR – or Total Debt Servicing Ratio – which was introduced by the Monetary Authority of Singapore in June 2013, limits the amount that home owners can borrow in Singapore. It is a way for the Singaporean government to safeguard borrowers from over-borrowing in the city-state, by providing banks (or other lenders) with a robust basis and standardised approach for assessing the debt serviceability of borrowers.
In our society, there’s a pervasive myth that any debt is always a “bad debt”. Whenever we talk about taking out a loan, or owing someone money, it’s almost always viewed negatively these days. But for small businesses, the truth about debt is far less clearly defined.
What is a Bridge Loan? In simplest terms, a Bridge Loan is a type of gap financing arrangement wherein the borrower can get access to short-term loans for meeting short-term liquidity requirements. It is often used to meet current obligations, while permanent financing is being secured.