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The bank will then review this information to determine whether the loans borrower is eligible for the loan and, if so, how much they can borrow and at what interest rate. These loans often have faster turnaround times and more flexible eligibility requirements than traditional loans, making them a good option for those who have less-than-perfect credit or live in a rural area.

Borrowers should also be aware that defaulting on an installment loan can have serious consequences, including damage to their credit score and the east possibility of legal action. One of the loans main advantages of a revolving credit line is the flexibility it offers.