There are many different types of loafers, but the most common are tasseled, penny, and moccasin styles,” explains Pledger. “Tasseled loafers have a long strip of leather that hangs down from the tongue, and they're often considered to be more formal. Penny loafers have a small coin-shaped piece of leather on the top, and they're typically worn for casual occasions. Moccasin loafers are made with soft, supple leather, and they have a very relaxed look.