unsecured loan

American  

[uhn-si-kyoord lohn] / ˌʌn sɪˈkyʊərd ˈloʊn /

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.

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Etymology

Origin of unsecured loan

First recorded in 1905–10

Example Sentences

It maintained the secured and unsecured loan rates at 2.375% and 4.250%, respectively.

From The Wall Street Journal • Dec. 18, 2025

Another unsecured loan for $600 million was granted at such a low interest rate that it makes sense for Alaska to keep it on the books.

From Seattle Times • Mar. 29, 2024

Mr Holch Polvsen's business Wildland Limited, a land conservation and tourism business which manages three Highland estates, provided the museum's directors with an interest-free unsecured loan of more than £600,000.

From BBC • Sep. 30, 2022

A home improvement loan is an unsecured loan provided by a lender that would allow you to finance major repairs and pay it back on an installment plan.

From Slate • Jul. 2, 2022

If you prefer, you may regard this amount as an unsecured loan and repay it with current interest on opportunity.

From Lorimer of the Northwest by Dewey, Alfred James