Unsecured Loan
Definition
- A type of loan that is given to a borrower without collateral such as property that is acceptable as security for the loan.
Synonyms
free credit, unenforceable loan, not covered, unguaranteed
Related Terms and Acronyms
- Collateral — Definition,
- Any property pledged as security for repayment of a debt.
- Line of Credit (LOC) — Acronym,
- A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
- Loan — Definition,
- Letting another party use something of value temporarily.
- Loan Shark — Definition,
- A lender that provides loans at usuriously high interest rates, often ensuring repayment with the threat of force.
- Non-recourse Debt — Definition,
- A loan secured by collateral where the borrower is not personally liable.
- Payday Loan — Definition,
- A short-term loan with an extremely high interest rate.
- Personal Loan — Definition,
- A loan made for personal, family, or household use as opposed to a business-type loan or a long-term mortgage loan to finance real estate.
- Secured Debt — Definition,
- A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.
- Secured Loan — Definition,
- Borrowed money that is backed by collateral.
- Security — Definition,
- Property designated as collateral.
- A tradable financial implement that represents ownership, the rights to ownership or debt.
- A document stating ownership of a stock or bond.
- Title Loan — Definition,
- A loan that uses a car as collateral.
- Unsecured Debt — Definition,
- Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.
