Unsecured Loan

An unsecured loan is a loan that does not require collateral. Instead of relying on assets as security, lenders decide whether to approve the loan based on the borrower's creditworthiness, such as credit score. Examples include personal loans, credit cards, and student loans.

It is a loan you can get without promising an asset like a house or car. The lender mainly looks at whether you seem able to repay it.