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The interest rate for a bad credit debt consolidation loan differs from a regular small bank loan because the interest rate for the bad credit debt consolidation loan would be higher. The rate would be higher due to the fact that the one receiving the loan would pose a risk because they have bad credit and obviously had not been good with payments or something in the past. The regular small bank loan would be for those who have good credit, so the interest rate would be normal or lower.

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