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What is the difference between a revolving loan and a non-revolving loan?
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A revolving loan is one in which the principal amount of the loan can be increased or decreased as needed. This type of loan typically has a fixed interest rate, but the borrower may have the option to pay more than the minimum payment each month. A non-revolving loan is one in which the principal amount of the loan remains constant over time. The borrower must make payments that cover both the interest and the principal on this type of loan.