Loans
A loan is a sum of money borrowed from a financial institution like a bank or a building society.
Banks and building societies are the most obvious places to get loans but now supermarkets and many other large organisations offer a diverse range of alternatives.
Loans work on the principle that you agree to borrow a sum for an agreed period of time (usually anything from 6 months to 10 years).
Lenders make their money by charging interest on the loan and interest rates can be either fixed or variable.
Loans can also be either secured or unsecured. A secured loan means the money is secured against something of value ie. your home or car so, should you default on the payments the lender can use whatever you've secured against the loan to recover the debt. With an unsecured loan you don't put anything up as collateral, which is riskier for the lender and can therefore sometimes be more expensive than a secured loan.
It is always advisable to make sure you read and understand all of the information available about the particular loan you are considering applying for before completing your application.