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Bridge loans are obtainable from the banks and financial institutions while the source and timing of the funds to be raised is identified along with certainty. While there is a time gap for access of funds, after that for implementation of or speeding up of the projects, bridge loans will be given. That type of loans is repaid instantly after raising the funds. The cost of bridge loans is usually higher than the working capital facilities given through the banks. At present the RBI has place a restriction on banks in providing bridge loans to curb malpractices in capital market dealings.
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