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unsecured loan

American

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

noun

Finance.

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.

Etymology

Origin of unsecured loan

First recorded in 1905–10

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

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

From The Wall Street Journal • Dec. 18, 2025

Graves will advance an unsecured loan of £1m to Yorkshire if the takeover goes through and arrange further funding of up to £4m if certain appointments to the new board are approved.

From BBC • Jan. 11, 2024

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’re going to finance a large summer toy, you’ll probably need a secured or unsecured loan.

From Seattle Times • Jun. 8, 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

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023