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These loans are riskier for lending institutions and are hence available at higher rate of interest. The loan is available only if the borrower has a good standing in terms of credit score, payment history and job status. Example; Personal loans, student loans, etc. When taking out a new loan, whether short or long term, a borrower should know the principal balance of the loan as. The amount of loan you will qualify for usually depends on your salary, history with the lender and the disposable finance set for allocation to borrowers.
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