There are unsecured loans that have nothing to back up the loan except for the full faith and credit of the individual applying for the loan. There are also secured loans that are backed by something that would be given back if the loan goes into default.
The unsecured loans include student loans, personal lines of credit and credit cards. These have varying interest rates with the lowest interest rates falling in the student loan category.
Secured loans are things like loans, automobile loans and home loans. The homes and autos can be forfeited if the individual defaults on the loan. There may need to be personal loans if a tenant gets behind in rent or in the council tax.
Fortunately the Council may reduce fees if an individual has a low income, is the only adult in the home and is living with students or adults with mental disabilities.