If you want to borrow money, you'll probably look for a personal loan rather than any other kind. Personal loan is just a term for a common type of loan, which is a loan taken out by an individual instead of a business for general purposes (but not for a mortgage which is obviously dealt with by a mortgage loan).
Most personal loans can be used for anything, and your lender probably won't even care that much about what you want to use the money for. Their main concern is making sure that you can pay back the loan. This isn't always the case, though. For example, home improvement loans and car loans, which are both types of personal loans, can be different. These loans are meant to be used for the things they were made for, like a big DIY project or buying a car.
Besides this, most personal loans work pretty much the same way. You fill out the loan application, get the money, and then use it as you planned. Then, you'll make regular payments (usually once a month) to your lender to pay back the money you borrowed for as long as your loan agreement says. This payment will include an amount to pay back the original amount you borrowed, as well as an amount to pay back the interest you'll be charged. So, when your loan term is over, you'll have paid back both the money you borrowed and the interest on that loan.
There is a difference between personal loans that are not secured and those that are. People can get unsecured loans without putting anything up as collateral (or to those that choose not to use available security to get a loan). Most of the time, the interest rates on these loans will be higher than those on secured loans, and you may be limited in how much you can borrow. On the other hand, secured loans will have lower interest rates and can be borrowed for larger amounts. This is because this type of loan will use your property (usually your home) as a guarantee against your loan. So, if you don't make your payments, the property you put up as security is a surefire way for your lender to get their money back.
If you don't own your own home, you'll probably only be able to get an unsecured loan. If you do own your own home, you'll have to choose between a secured loan and an unsecured loan. This comes down to personal choice and how comfortable you are with using your home as security to get a better deal. Most of the time, this isn't a problem, and most people will choose secured loans to get the rates and loan amounts that work best for them.
Before you sign up for anything, make sure you know how personal loans work and how to get the best rates on the loans you take out. There are hundreds of sites on the Internet that can give you more information or even help you apply for a loan. Before you start, search for "personal loans" in a UK search engine, like msn.co.uk, to find some useful information.
