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A loan is a monetary aid lent by one or more people from one institution to a set number of people in need, which is later paid back with a little extra amount, commonly referred to by the masses as the interest. To put into layman terms: a loan is an amount that one can borrow from an institution or person, which then one must duly pay back with an extra money that is called interest. This interest or rate of interest varies from bank to bank and loan provider to provider and keeps fluctuating throughout the time.
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