unsecured loan

[uhn-si-kyoord lohn]

noun

Finance.

1. a loan that is supported only by the borrower’s creditworthiness and income and does not require the borrower to put up collateral, as a home or vehicle, to back up the loan. A personal loan made to someone is usually an unsecured loan.

Word History and Origins

Origin of unsecured loan¹

First recorded in 1905–10