A Bank Loan is an amount of money loaned at interest by a bank
to a borrower, usually on collateral security, for a certain period of time.
Secured Bank Loan - a loan
which uses an asset as collateral. A good example is a mortgage loan. For this
type of large loan, the Bank secures the house as collateral. If people, defer
on their loan, the bank is able to legally possess the home to pay off the
outstanding debt.
Unsecured Bank Loan - a loan
given without any asset for collateral. These tend to be for smaller amounts
and typically attract a higher interest rate because of the perceived risk.
Inter Bank Loan -
commercial banks are short of money and so are forced to borrow money on
the money markets. These are typically short term loans and can be interbank or
direct to the Central Bank.