Unsecured debt

Unsecured debt is a debt in which the borrower does not provide a collateral against the loan. 

Know more

Unsecured debt exposes the lender to credit risk, because in case of default by the borrower, the lender has no collateral to recover the borrowed amount from.

Unsecured debt being risky, in turn, commands a higher interest as compared to secured debt which is secured by a collateral.