Essentially, there are two broad types of financing that can be used in a situation where you want to purchase something that you cannot afford to pay for all at once. These two loan types are secured loans and unsecured loans. Secured Loans: A secured loan is the type of loan where there is some form of security or collateral involved. These loans are by far the most common types of loans in the world. Imagine a situation where you own a car and would like to purchase a new sports bike.