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The duration of the loan period is considerably shorter – often corresponding to the useful life of the car.
There are two types of auto loans, direct and indirect.
Usury is a different form of abuse, where the lender charges excessive interest.
In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates.
It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her.
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A loan is a debt provided by an organization or individual to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment.
If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.
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