Loans

Loans are the most common form of borrowing services available after overdrafts and credit cards. There are a number of different loan types, such as personal loans, car loans, home equity loans and business loans.

Banks will provide additional funds through loans to their customers in return for promises of repayment and certain guarantees. For example, you may find it easier to obtain a car loan than a personal loan, as the car loan will be secured against the car you buy. If you default on your loan and cannot repay it, the bank will be able to take possession of your car and sell it to reclaim the outstanding portion of your loan debt.