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What is a Personal Loan?

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A personal loan is a form of loan that you take out to finance a specific loan purpose. You borrow an amount from the bank once. This loan form provides security because the term of the loan and the interest rate are fixed. You repay the loan to the lender in fixed monthly amounts. These payments consist of interest and principal. At the end date, the loan is fully paid off and you are debt-free.

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