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

Example Sentences

The seller later agreed that the funds transferred to him would be treated as an unsecured loan, and that Mr Tripathi could therefore use it for his own purposes, his lawyers added.

From BBC

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

Subject to approval by the FCA in the next fortnight, the second tranche of a personal, unsecured loan of £1m from Graves will be advanced to the club.

From BBC

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

Amazon.com Inc said on Tuesday it had reached an agreement with certain lenders to provide the e-commerce giant an $8 billion unsecured loan.

From Reuters