There are various other types of ways for borrowing money but all those different financing vehicles can actually be classified into a “secured” or “unsecured” loan. These are the only two basic kinds of loans that exist for any borrower. Knowing the difference is important if you want to be smart when it comes to your finances. When you start researching personal loans you’ll quickly learn that there are different ways to borrow money for all kinds of things that you need money for.