Rag rugs used to be a cheap way in the middle of the 20th century of having a rug and are made by using odd scraps of fabric on a background of old sacking.
Braided rugs are made by using two, three or more strips of fabric, most of the time from wool, folding the raw edges to the middle and braiding them together. For an oval rug the center braid would be one inch longer than the width. example 2 foot by 4 foot rug center strip would be 2'2" long. The center braid is laced together and new strips are sewn on to make the braid longer as lacing continues.
Rug hooking is a craft where rugs are made by pulling loops of yarn through a stiff woven base such as cotton, rug warp or monks cloth. The loops are pulled through the backing material by using a latch hook mounted in a handle.