Types of Loans:
There are a large variety of loans, each with a specific objective, characteristics and eligibility criteria. A few examples are classified as follows:

Secured vs. Unsecured:
Secured loans: Require a collateral, thus you offer up an item such as a house or car to secure it. When that happens, should one default, the lender is able to take over the asset. These loans usually have much lower interest rates. For example: mortgages, auto loans and home equity loans.
Unsecured loans: such loans have no collateral and thus are exceptionally reliant on the borrower’s credit standing and salary. Chances are, these loans have high chances of getting approved since lots need them, however, they have high-interest rates. Such secured loans include personal loans, cards, and education loans.

By Purpose:
Debt relief loans: a loan that pools together a lot of debt’s monthly repayments into one single payment per month.
Home mortgage loans: Enable one to purchase a new house or refinance an existing house.
Auto loans: Loans made to procure new or used vehicles.
Student loans: Loans aimed at taking care of educational expenditure.
Business loan: Usually used for start-up capital, growing the business or to buy new assets.
Medical loan: This loan is usually directed towards paying for medical expenses.

Other types:
Payday Loans: These loans are a short-term solution, however they offer high-interest rates which is why most people use them in an emergency only. Title loans: They are loans where the car title can be placed on loan for a short time at high-interest rates.
Pawn Shop loans: same principal as title loans only that they use personal items instead for borrowing money.

Who Needs Loans: So who actually uses them? This a common practice made by many people for entitled purposes.

Individuals: General expenses: usually, expenses that are for homes, the car they own, university, or other illnesses that require medical attention.
Debt consolidation: This is a better way of managing multiple debts.
Emergencies: Unplanned costs such as that of a car repair or home improvement.
Investments: Creating a new company, buying a property.

Businesses:
Start-up capital: Starting a new company for the purpose of business.
Expansion: Extending the existing business activities.
Inventory or equipment: Acquire the necessary inputs.
Cash flow management: Meet temporary gaps.

For all those in a debt, borrowing money should not be taken lightly. Attempt to assess your requirements, your ability to pay and the interest rates before going for the loan. Try to explore the market for amounts offered by competing companies and how their terms differ for you.