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What are Loans?

Loans are temporary transfer from someone to another person for a certain period of time. The person who provides the loan is usually called the lender and the person who accepts the loan is usually the borrower. In exchange, the lender may place a condition to the borrower that he/she repays the entire loan with an extra sum of money which is usually called the interest payment.

Now a days, we have Banks who are the leagalised lender and we can virtually have all kinds of loans in the market from, housing loans to commercial loans to renovation loans.

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