Wikipedia has more information on the types of loans, but below is a quick summary. There are many different types of loans people can borrow from, these can include the following. The first category of loans are secured and unsecured loans. A secured loan, also known as a mortgage loan, is when an individual uses an asset as collateral, this can include your house or a car. The interest on this type of loan is usually lower than other types as the assets are possessed if the person is unable to payout. A unsecured loan can include credit card debt, personal loans, bank overdrafts, corporate bonds etc. Generally the interest rate is higher for unsecured loans as there is a lower amount of collateral. Other loans can include online payday loans and logbook loans which are short term unsecured loans.