Previous Page

Unsecured loan

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

Table of Contents

Unsecured Loan

An unsecured loan is a loan that is not backed by collateral, such as a house or car. This type of loan is typically offered by banks and other financial institutions, and is based on the borrower’s creditworthiness. Unsecured loans are typically more expensive than secured loans, as they carry a higher risk for the lender.

History of Unsecured Loans

Unsecured loans have been around for centuries, with the earliest known example being the loan of money from a merchant to a customer in the Middle Ages. Since then, unsecured loans have become increasingly popular, with banks and other financial institutions offering them to customers with good credit.

Today, unsecured loans are used for a variety of purposes, including debt consolidation, home improvement, and financing a business. They are also used to cover unexpected expenses, such as medical bills or car repairs.

Comparison of Unsecured Loans

Type of Loan Interest Rate Term Length
Unsecured Loan 7-36% 1-5 years
Secured Loan 3-18% 1-30 years

Summary

Unsecured loans are a popular way to finance a variety of needs, from debt consolidation to home improvement. They are typically more expensive than secured loans, as they carry a higher risk for the lender. For more information about unsecured loans, visit websites such as Bankrate, Credit Karma, and NerdWallet.

See Also

  • Secured Loan
  • Debt Consolidation
  • Home Improvement Loan
  • Business Loan
  • Personal Loan
  • Payday Loan
  • Line of Credit
  • Credit Card
  • Mortgage
  • Auto Loan

Do you like the post? Share it now:

AnalyticsTrade Team

AnalyticsTrade Team

🎉 Introducing AnalyticsTrade's exceptional team of expert analysts! 🌟 These seasoned pros have been dominating the capital market, trading a diverse range of assets for more than 15 years! 📈💹 Get ready to level up your game with our top-notch, captivating resources in the capital market! 🚀📚

Was this article helpful?

X

Thank You for Contacting Us!

Your email has been successfully submitted and we will get in touch with you shortly