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They will then be able to withdraw a certain amount of cash, up to their cash advance limit. And if you live in a rural area, it can be hard to find a traditional lending place nearby.
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As a result, they may be able to offer lower interest rates on personal loans than banks or other for-profit lenders. Doorstep loans often have very high fees and interest rates, which can make them hard to pay back. This means that if the bad borrower defaults on the loan, the lender can seize the collateral to recoup their losses.