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Overall, personal loans can be a useful financial tool for individuals who need to borrow money for a specific purpose. Personal loans may have fixed or variable interest rates, and they may be offered with different repayment terms, such as monthly payments over a period of several years. For example, if the credit borrower has a credit limit of $10,000 but only borrows $1,000, they will only pay interest on the $1,000 that they borrowed.

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