Non-Secured Loans

There are several types of non-secured loans as described below :
Personal Loans. Personal loans are also known as unsecured loans and they are the most common way to borrow money.
Unsecured loans are not backed by any collateral, i.e. something of worth such as your home which can be repossessed if the loan isn't repaid. Personal Loans are granted based on the borrower's credit rating and therefore considered cheaper and less risky to the borrowers than secured loans.
Student Loans. Student loans are designed to help students with their tuition fees and living costs in higher education. Students start to pay these non-secured loans when the course finishes and when their annual income reaches a certain limit. These are low interest rate loans.
Doorstep Loans. Doorstep loans are loans where the creditor offers cash and collects payments at your home. They are usually small loans and paid pack over short periods of time. Borrowers may pay more for this type of loan because the interest is higher than high street loans.
PayDay Loans. PayDay loans are also known as cash advance loans. The lender offers the money and the borrower writes a cheque out to the lender for the borrowed amount plus interest. The creditor cashes the cheque within an agreed short term. These loans can be very expensive because the high interest rate.
Credit union loans. Credit union loans are offered by financial co-operatives owned by their members. They grant low-rate loans and most of the cases take payments directly from the borrower's wages.
Loans from family or friends. Money can be either borrowed from family and friends as an informal agreement where you agrees verbally to pay back the borrowed amount, or a family member takes out a loan and gives you the money which you will pay back, or a family member or a friend guarantees a loan for you.
Loans from employers. These are advances on your wages offered by your employer and taken back directly from the employee's wages.
LoanSharks. These are loans offered by unlicensed companies which recur to violence or intimidation to recover their money if the debt is not paid back. These loans generally have extremely high interest rates.
Pawnbrokers. A pawnbroker lends money that is the value of the good is being pawned. If you want to keep the good you need to pay the loan back within a period of time. If the loan is not paid back, the pawnbroker can resell the good.