In layman's terms, a credit bureau is an organisation that collects information on a person's credit, such as borrowings, bill payments, pending debts, and so on. This information may subsequently be shared with credit information companies, which follow the protocol of evaluating an individual's credit statement and reports for loan approval, credit card approval, and so on.
A loan is a credit given by a financial institution (lender) to a borrower to meet his financial obligation or wants. It benefits the borrower by ensuring his financial liability is fulfilled, while ensuring the lender earns money on the principal loaned by charging a certain interest upon it, depending on the class of loan taken.
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