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There are basically two types of loans available, secured and unsecured loans. Secured loans are mainly for homeowners because the borrower uses their home as security or collateral against the loan. This is a relatively low risk for the lender because they are protected in the business of the borrowers inability to repay the progress the upshot is that concentration rates are degrade for secured adverse description loans. Unsecured loans require no pledge of collateral to safe the debt but because this represents a sophisticated risk for the lending company, combination rates are higher.
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