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There are lots of types of loans out there. It can be divided into three categories which is secured, unsecured and demand. A secured loan is a loan where you must mortgage some of your assets such as house or Company in order for you to be eligible for the loan. Unsecured loan is a loan where you do not have to put anything under assurance. There are many types of unsecured loans, bank overdrafts, corporate bonds, credit card debt and the most common one is the personal loan. Demand loan is usually a short term loan where it does not have a fixed date to repay it except it carries a floating interest. There are a lot of reasons why people take a loan. It can be because of emergency cases such as accident, medical emergency or pending bills. Loans are usually taken to buy home ,car and for business.

Many people take up loans to invest in their future. Invest in the future means your education or business. Studying abroad is not a very cheap thing. Million or millions are needed for education

   
 
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