A particularly convenient type of loan to take out these days is the line of credit loan. This is a loan that is available, usually by securing the loan against the equity in your property, to be drawn against as needed and not, as is the case with almost all personal loans, drawn down in full at the commencement of the loan period.
The benefits of such an arrangement are twofold. Firstly you do not draw any money on the loan until you actually need it. This creates the opportunity for you to save money whilst before you actually spend any of the line of credit loan. The result of this is that you may not need to draw down as much as you anticipated when you arranged the facility. This is fine, even if the facility is greater than the amount you now need, you simply ignore the excess.
The second reason is that you only pay interest on the loan from the time that you draw against the loan, meaning that as long as you have not made use of the facility you will pay no interest. This is markedly different from a traditional installment loan where you pay a full interest burden from day one of the loan life.