Some loans may also be secured by collateral, such as a house or car. Secured loans typically have lower interest rates than unsecured ones, as the lender has an asset to repossess or sell in the event of default. A loan can be used for a variety of purposes, from debt consolidation to buying a new car or taking out a business loan to expand your operation. However, it is important to remember that the money you borrow must be paid back in full at some point, so you should plan carefully before applying for a loan.