Case Study · Singapore

Refinanced Short-Term Loan at Reduced Interest-Rate

29 October 2018

Refinanced Short-Term Loan at Reduced Interest-Rate

Rikvin Capital provides a short-term loan for refinancing in Singapore

The individual approached Rikvin Capital for a refinancing solution. Rikvin Capital evaluated the client’s property and provided a short-term loan with a lower interest rate. The loan was secured against the property and the previous loan was paid off. This allowed the client to have access to working capital for their business at a more favorable interest rate, improving their financial situation.

Problem

  • The individual was paying a high-interest rate every month on his previous short-term loan.
  • The client only required a loan-to-value of 55% on his security to use as working capital in his business.

Solution

  • After performing the necessary due diligence, Rikvin Capital was able to provide the client with a short-term loan at a reduced interest rate.
  • Rikvin Capital took over the first charge of the property after the client repaid the previous debtor.
  • Location: Bukit Timah, Singapore
  • Market Value: S$ 36,000,000
  • Loan Amount: S$ 20,000,000
  • Loan-to-Value: 55%
  • Duration of Loan: 12 Months
  • Payment Schedule: Monthly Interest Payment
  • Asset Type: Good Class Bungalow
  • Completion Time: 14 Days

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FAQ

Can Rikvin Capital refinance an existing short-term loan at a lower rate?

Yes. The Bukit Timah case here refinanced an existing high-rate short-term loan against a Good Class Bungalow into a new $20 million Rikvin Capital loan at a lower rate (55% loan-to-value, 12 months, 14 days). Refinances pay back the switching cost within the first few months in most cases.

How does a private-loan refinance work mechanically?

We take over the first charge on the property after the existing lender is repaid. On day one, our drawdown settles the existing debt and releases any surplus to you. From your side, the only change is who you make payments to and the new (lower) rate.

How fast can a refinance complete?

10 to 14 working days is realistic for a clean property where the existing lender cooperates on payoff figures, as in this Bukit Timah case. We coordinate the redemption date with your existing lender so there are no double-interest periods.