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I think each of us is aware of what loans are. We borrow money from both banks and non-banking companies. In this context, the concept of private loans also often appears. What does it refer to?

A private loan is a loan that we receive from a private individual. It can be someone you know and someone you do not know. We can borrow smaller loans without signing the contract, but if we want to borrow several hundred zlotys, we should sign a contract in which we will write down the most important information about who, how much and on what terms borrow money.

For a private loan, we can go to friends and family. Usually, we will borrow at no extra cost, that is, we will simply give back just as much as we borrowed. Of course, everything depends here on our individual arrangements with the other person. When it comes to private loans provided by people who are not familiar with us, the matter is different.

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