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In case, you as a borrower go wrong to repay within the stipulated time span, then the creditor has a right to take ownership of the collateral and then sell the identical for the purpose of recovery. Since there is a security deposit which assurances that the lender will be able to retrieve his money, this pattern of a loan is one of the most befitting choice, particularly for the lenders. The most common pattern of collateral s utilized for the purpose includes automobiles and house.

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