Borrowing of money by one person from another upon a systematic agreement defines a loan. Loan refers to debt agreements between a lender and a borrower. The money that is borrowed or lent in a loan is called as the principal. Now a day people are acquiring more knowledge on various loans available and the easiest ways of applying for the same. The money that is borrowed or lent is agreed to be collected at a later time in addition to some extra fee or charge usually called as an interest. Loan types such as cash advance loans are becoming more popular among people. There are two types of loans such as secured and unsecured type of loans. In a secured type of loan the lender of money lends the amount to the borrower based on some of the borrower’s assets. When a person borrows some money from another he repays the debt in regular installments or through partial repayments. The pledging of asset in a loan transaction makes it a secure loan and is usually not easier to obtain. Credit card debts, personal loans, bank over drafts are some of the unsecured loan types available. In an unsecured loan type the borrower is provided with the loan without involving any pledging on assets.