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You are required to make a monthly payment and to pay interest on the amount loaned. The amount of interest you pay is also determined by the amount of your loan, your credit history and the economy. The interest in most cases can range anywhere between four and ten percent. Theses purchases may also require collateral for an approval. Collateral is something provided to the bank as insurance that they will be paid. Physical property such as a house that has been paid for or a vehicle that has been paid off may be common to use as collateral. This property will be claimed by the bank if you fault in your payments...
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