People borrow for different reasons. There are mostly some reasons why one of the participants or someone they know may be having a loan.

He or she may have borrowed to invest or to respond to an unexpected emergency or even to consume (to purchase an item for which he or she did not have enough money). Participants need to understand Key things to consider while obtaining any loan like Institutions, products, terms and conditions, when to borrow and when not to borrow, Interest rates, other costs and collateral.

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