Unsecured Loan

An unsecured loan is a type of loan that does not require collateral, which means borrowers do not need to pledge any assets, such as a house or car, to secure the loan. Instead, unsecured loans are granted based on the borrower’s creditworthiness and ability to repay.

1. No Collateral Required: Unsecured loans are not backed by collateral, making them accessible to borrowers who may not have valuable assets to pledge.
2. Credit-Based Approval: Lenders assess the borrower’s credit history, credit score, income, and other financial factors