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Once the loans borrower has been approved for the loan, they will need to sign a loan agreement, which outlines the terms of the loan, including the interest rate, repayment schedule, and any fees that may be associated with the loan. Some traditional loans have strict rules about credit scores or needing collateral (like a car or house). The lender will hold onto the candia loan funds until the loan is paid off, at which point the funds are released to the borrower.