Unsecured Loan

What Does Unsecured Loan Mean?
A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.

Investopedia explains Unsecured Loan
Generally, a borrower must have a high credit rating to receive an unsecured loan. Commercial paper is an example of an unsecured loan.

Filed Under: Bonds, Fixed Income

Related Terms

Belt And Suspenders
Collateral
Commercial Loan
Commercial Paper
Five Cs Of Credit
Loan
Loan Stock
Margin
Margin Call
Signature Loan
More Related Terms

Related Links

The Importance Of Your Credit Rating - Do you know how your borrowing activities affect your credit rating? Find out here.
Does The Basel Accord Strengthen Banks? - This 1988 agreement sought to decrease the potential for bankruptcy among major international banks.
Getting A Loan Without Your Parents - Use the 5 "W"s to finance your dreams without banking on a second signature.
Analyzing A Bank's Financial Statements - Break down the walls around researching financial instutions' financials.
Digging Out Of Personal Debt - Find out why good intentions can put consumers in an even bigger hole than before.
Borrowing From Your Plan - Left with no alternative but to take money out from your retirement savings? Here are some guidelines.
Different Needs, Different Loans - Find out what options are available when it comes to borrowing money.

Rate this Term: Your Rating: Overall Rating: Vote Now!