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In cases where the financial institution gives a loan without collateral they don't really have this security net. Of course the financial institution doesn't do this being nice. They just desire to get more customers. To still generate profits they demands a higher interest rates on these refinancing options. In Norway lenders that offer consumer loans without collateral usually demand interest levels between 10% and 30%. This is obviously costlier for the borrower, but they don't have to use any collateral.
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