Unsecured Loan - Explained
What is an Unsecured Loan?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is an Unsecured Loan?
An unsecured loan is a loan issued without any collateral or guarantor. Unlike a secured loan, an unsecured loan is issued without any protection or collateralization.
Contrary to a secured loan, unsecured loans are generally only available to borrowers with high credit ratings and creditworthiness. Unsecured loans pose higher risk to lenders - so, these loans have higher interest rates. Credit cards, personal loans, business loans and student loans are good examples of unsecured loans.
- What is a Security Interest?
- Pledge as Collateral
- Cross Collateralization
- After-Acquired Collateral
Unsecured Loan Definition
- Unencumbered Asset
- What is a Secured Creditor?
- Unsecured Creditor
- What are the benefits of security interests for creditors?
- Limited Recourse Debt
Academic Research on Unsecured loan
- The sterling unsecured loan market during 2006-08: insights from network theory, Vila, A., Soramaki, K., & Zimmerman, P. (2010).
- The relationship between the overnight interbank unsecured loan market and the CHAPS Sterling system, Millard, S., & Polenghi, M. (2004).
- Household's optimal mortgage and unsecured loan default decision, Kim, J. (2015). Journal of Macroeconomics, 45, 222-244.
- Interest rates and default in unsecured loan markets, Divino, J. A., Lima, E. S., & Orrillo, J. (2009, October). In 31 Meeting of the Brazilian Econometric Society.
- State Ownership Corporate and Unsecured Loan: Government Intervention, Implicit Collateral or Information Advantage?[J], Chun, Y. (2010). Accounting Research, 8, 009.
- Interest rates and default in unsecured loan markets, Divino, J. A., Lima, E. S., & Orrillo, J. (2013). Quantitative Finance, 13(12), 1925-1934.
- Long-Run Performance of Redeemable Convertible Unsecured Loan Stocks (RCULS) and Irredeemable Convertible Unsecured Loan Stocks (ICULS), Abdoh, M., & Yaseer, W. M. (2007). (Doctoral dissertation, Universiti Utara Malaysia).
- A Bayesian hierarchical model for unsecured loan Loss Given Default, Bijak, K. (2015).
- The sterling unsecured loan market during 20062008: insights from network topology, Soramki, A. W. P. Z. K. Simulation analyses and stress testing of payment networks.
- Customer satisfaction survey of unsecured loan customers of BRAC Bank limited, Akhtar, J. (2012).
- A model of complex equity funding for contingent acquisitionsa case study of non-interest bearing convertible unsecured loan stock, Hillier, D., & Marshall, A. P. (1998). Journal of Corporate Finance, 4(2), 133-152.
- Naked debenture. A DEBENTURE which is issued in respect of an unsecured loan. named vote. A vote in which a record is kept of each personal vote; it is normally , Lamming, R. (1988).
- Convertible Unsecured Loan Stocks, Conroy, R. M.