Unsecured Loan

An unsecured loan is a type of credit facility that is not backed by any collateral. It is based solely on the borrower’s creditworthiness and ability to repay the loan. In India, unsecured loans include personal loans, credit card loans and business loans that do not require any collateral to be pledged as security. Usually, you get unsecured loans at a higher interest rate as compared to secured loans like home loans or gold loans. The ease with which you can get an unsecured loan depends on the lender’s eligibility criteria.