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Difference between loan and advance?

Curtis Rhodes

in Student Loans

1 answer

1 answer

Ralph Lopez on August 8, 2018

The difference between a loan and an advance is that the loans arecontractual agreements that have terms for the repayment of the loan. A loan ismoney that you get from someone or a bank that is going to pay for it,usually with interest. An advance is money that you receive based onfuture earnings as a paycheck. If you take an advance on yourearnings, your next paycheck will be less by the amount of theadvance.

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