At its simplest, a loan is a fixed amount of money that a lender provides to you. You repay the full amount, usually with interest, over an agreed period.
Some loans carry fixed interest rates. Others have variable rates. In some cases, you may need to offer a personal asset as security.
Secured Loans
A secured loan requires you to put up an asset as security. If you fail to make repayments, the lender can repossess that asset.
Unsecured Loans
An unsecured loan does not require any collateral, which usually means higher interest rates.
Instalment Loans
With an instalment loan, you borrow a fixed sum and repay it in regular monthly payments over a set term.
Revolving Credit
Revolving credit gives you a pre-approved borrowing limit that you can draw from, repay, and draw from again.
