Confused by loans? You're not alone.

There comes a point in most people's lives when they simply can't avoid the need to borrow money. Whether you're a student entering university, a home buyer, or just someone who wants a trip of a lifetime holiday, there are a multitude of loans to suit each borrower.

For many people, the first time they borrow a substantial amount of money will be during their years of university study as a student. With tuition fees and living expenses out of the average person's budget, and student grants no longer an option, it will be necessary to rely on students loans to help see you though to the end of your studies. Student loans are designed to be a way of financing your studies without leading to financial problems later in life. They are paid off in small monthly amounts after the student has found employment and have low interest rates - currently 2.4%.

Following graduation, the next time most people need to borrow money is to finance the purchase of a property. Known as a mortgage, this is a large sum of borrowed money, the maximum amount of which is calculated from your salary. Banks normally allow you to borrow 3 or 4 times your annual salary, although with UK house prices rising faster than wage increases, some banks are now offering mortgages that allow you to borrow up to five times your salary.

For those looking to start up their own business or grow an existing enterprise, what's known as a business or commercial loan can be obtained. Most lenders will require information about the business, such as your assets, credit rating and a business plan, which shows how you intend to generate enough revenue to pay back the loan.

Many people find they need - or simply want - a bit of extra money at some point in their lives. Maybe they want to redecorate their home, fancy a new car, a trip of a life time holiday, or perhaps just buy a new TV. In this case it's possible to obtain a personal loan. Most banks offer loans which are easy to arrange and allow for this sort of purchase. There are many lenders out there, so the quickest way to see the different options is to use the internet to get a loan quote online.

There are also loans available for special occurrences and circumstances, such as wedding loans, unemployment loans (especially for the unemployed) and career development loans. So whatever your reasons for borrowing money, there's almost certainly a lender out there who will cater for your loan needs.

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Paul McIndoe is a recent university graduate whose hobbies include water-skiing and rock climbing.

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