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.
- Also called sig·na·ture loan [sig-nuh-cher lohn, -choor] /ˈsɪg nə tʃər ˌloʊn, -tʃʊər/ .
- Compare secured loan.
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
How to use unsecured loan in a sentence
The report that a bank had given an unsecured loan to a superPAC turned out to be based on flawed FEC reporting.
This unsecured loan was one of the very things, I doubt not, that helped to inspire general confidence.The Americanism of Washington | Henry Van Dyke
If you prefer, you may regard this amount as an unsecured loan and repay it with current interest on opportunity.Lorimer of the Northwest | Harold Bindloss