Unsecured loan
A loan made without specific security over an asset, relying primarily on the borrower’s promise and creditworthiness.
Related terms
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Unsecured creditor
A creditor without specific security over the debtor’s assets, normally ranking behind secured and preferential claims in insolvency.
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Unsecured debt
Debt not backed by specific security over an asset, such as many credit cards, trade debts and personal loans.
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Secured creditor
A creditor with enforceable security over an asset, giving it rights against that asset if the debt is not paid.
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