GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Unsecured Loan


Synonyms:free credit, not covered, unenforceable loan, unguaranteed
Filed Under: financial-banking
Tags: banking
 

Definition of unsecured loan

unsecured loan
1. A type of loan that is given to a borrower without collateral such as property that is acceptable as security for the loan.

Related Terms and Acronyms:

  • collateral   Any property pledged as security for repayment of a debt.
  • line of credit (LOC)   A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
  • loan   Letting another party use something of value temporarily.
  • non-recourse debt   A loan secured by collateral where the borrower is not personally liable.
  • payday loan   A short-term loan with an extremely high interest rate.
  • personal loan   A loan made for personal, family, or household use as opposed to a business-type loan or a long-term mortgage loan to finance real estate.
  • secured debt   A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.
  • security   A tradable financial implement that represents ownership, the rights to ownership or debt.
  • title loan   A loan that uses a car as collateral.
  • unsecured debt   Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.

More Related Terms and Acronyms

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