The banks borrow from the Federal Reserve Bank with no interest rate but you go for a loan and the interest rates are anywhere from 10 to 20 percent.
Opening a saving account and taking a secured loan against it will give you an interest rate that is based on the Prime Interest rate plus the almost none existent interest rate on your saving account.
You make your regular payment each month and as you make your payments, part of your saving balance becomes available. You then just ask your teller or loan officer to roll over the available balance each month in your savings account as a principle payment.
You pay way less interest and the loan is paid off much faster than the original term of the loan.
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