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Home Definitions Borrowing Define Unsecured Loan

Define Unsecured Loan

Unsecured loans are loans that are not secured against assetsAn unsecured loan is a sum borrowed that is not secured by the applicant assets. This type of loan is therefore issued by the lender on the basis of the applicant's ability to meet loan repayments.

Generally unsecured loans will have higher interest rates when compared to secured loans, but are nevertheless generally cheaper than borrowing on credit cards or store cards.

 

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