Unsecured Loans

Unsecured loans are types of borrowing that do not require collateral, meaning you don’t have to put up an asset, like a house or car, to secure the loan. Instead, lenders base their decision on your creditworthiness, which includes your credit score and financial history. Because there's no collateral, unsecured loans often come with higher interest rates and stricter eligibility requirements. Common examples include personal loans, credit cards, and student loans. If you fail to repay, lenders can pursue collections, but they cannot take your property directly.