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Okay, so why do people engage in **offshore lending**? Well, there are several compelling reasons for both borrowers and lenders. Let's start with the **borrowers**. One of the primary drivers is access to better terms. *Offshore lending* can offer lower interest rates than what's available in the borrower's home country. This is because OFCs often have lower tax burdens and less stringent regulations, which can translate into lower costs for lenders. This advantage is especially attractive to businesses and individuals seeking to minimize their borrowing costs. It is worth investigating this if you are a borrower.
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