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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 next to the loan. This is a relatively low risk for the lender because they are protected in the business of the borrowers inability to pay off the improvement the repercussion is that concentration rates are degrade for secured adverse bill loans. Unsecured loans require no pledge of collateral to safe the debt but because this represents a forward-looking risk for the lending company, interest rates are higher.
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