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FAQ's: FREQUENTLY ASKED QUESTIONS
What is an interest rate?
An interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. It is the additional amount the borrower must pay to the lender for using their funds. Interest rates can be fixed (remain constant throughout the loan term) or variable (fluctuate based on market conditions).
What is the difference between secured and unsecured loans?
Secured loans require collateral, such as a house or a car, which the lender can seize if the borrower fails to repay the loan. Unsecured loans, on the other hand, do not require collateral and are based solely on the borrower's creditworthiness. Secured loans generally have lower interest rates compared to unsecured loans.
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