U
Loans
Unsecured Loan
A loan that does not require any collateral. Approval is based solely on your income, credit score, and affordability. Because there is no asset for the lender to claim if you default, unsecured loans carry higher interest rates.
Usage Examples
"I applied for an unsecured loan because I don't own a car or property to use as collateral."
"Unsecured loans are riskier for lenders, so expect to pay a higher interest rate."