A loan that is not guaranteed by any specific type of property. The creditor receives no collateral as an assurance for repayment and therefore runs the risk of default by the borrower without having at hand a specific source to recourse to.

Generally speaking, unsecured debt is associated with higher interest rates than secured debt due to the lack of security for the lender. Some lenders examine the credit history of borrowers and their ability to pay instead of asking for collateral.