Loan
Unsecured Loan
Also known as: Signature Loan, Non-collateral Loan
Loan provided without collateral, based purely on borrower's creditworthiness and income.
Detailed Explanation
Unsecured Loans don't require any collateral and are approved based on income, employment stability, and credit score. Examples include personal loans, credit cards, and education loans (up to certain limits). They offer faster processing but come with higher interest rates to compensate for increased lender risk. Default recovery relies on legal action rather than asset seizure.