Unsecured loan

Debt Term

An unsecured loan is a type of loan that does not require collateral to secure the loan – that is (for example) with an unsecured bank loan you don’t have to promise to give the bank your house if the loan is not repaid.

Because an unsecured loan has a higher risk of losing its value to the loan provider than a secured loan, higher interest rates are charged.

Don Gooding

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