Unsecured personal loans are loans that are approved without the need for collateral. Instead of pledging assets, borrowers qualify based on their credit history and income. Lenders do not have the right to take physical assets (such as a home or vehicle) if borrowers stop making payments on unsecured loans.
Unsecured personal loans are often referred to as “signature loans” as borrowers only need to bring their signature to the table. They must promise to repay, but no collateral is needed to back it up. Personal loans from lenders are unsecured and can be used for any purpose.
The Benefits of Getting an Unsecured Personal Loan