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Loans
A loan, or an advance, is a financial
arrangement whereby you acquire a large amount of money with the promise to
repay it back over a period of time.
The lender will usually charge an interest on
the amount you borrow. This means that you will have to pay back not just
the amount borrowed but also the interest. This means that you will be
paying back more than you borrow.
The advantage of a loan is that it can enable
you to make a purchase immediately, even though you might not normally have
the required amount available.
The cost of a loan, the interest, can vary
according to the nature of the loan, the amount of the loan, the length of
time you agree to pay back and your 'rating' as a borrower. The lender may
often seek some 'security' to ensure that you are able to pay back the loan.
In some cases, this security may be your home.
It is important when seeking a loan to 'shop'
around and see what loans might be available to you.
The articles in this section of the website
give you an insight into the nature of loans and how or when to apply for
one.
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