There are a few different types of loans. All unsecured loans are made to people and no collateral is required. Unsecured loans are also called personal loans or sometimes signature loans. They are pretty much based on the borrowers promise to pay. Many banks and credit unions offer this type of loan to eligible customers. Customers who are eligible may choose this type of loan instead of other options available with higher interest rates. Those other options include cash advances and pawning items at a pawn shop. Using the services of a bank or credit union is a much better arrangement for the borrower.
