Unsecured loans are the loans which are not secured against an asset and are therefore available as home owner loans or tenants loans. They are also known as signature loans.
Facts About Unsecured Loans:
- These loans are issued and supported by the borrowers creditworthiness.
- These loans can be used for any purpose like to purchase a new car, to pay off your debts, for home improvements etc. Commercial paper is an example of unsecured loans.
- These loans are not backed by collateral.
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