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unsecured loan

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Financial Dictionary

Unsecured Loan

A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.

Investopedia Commentary

Generally, a borrower must have a high credit rating to receive an unsecured loan. Commercial paper is an example of an unsecured loan.

Related Links

The Importance of Your Credit Rating

See also: Collateral, Commercial Paper, Loan

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