BANKING AFFAIRS

Detailed explanation-1: -An Unsecured Loan is a loan provided solely based on the creditworthiness of the borrower without pledging any collateral as security in the event of default or non-payment of dues. Unsecured loans are also referred to as personal loans and generally provided to borrowers with high credit ratings.

Detailed explanation-2: -Credit cards, student loans, and personal loans are examples of unsecured loans.

Detailed explanation-3: -Student loans, personal loans and credit cards are all example of unsecured loans. Since there’s no collateral, financial institutions give out unsecured loans based in large part on your credit score and history of repaying past debts.

Detailed explanation-4: -An Unsecured Loan is a loan that does not require you to provide any collateral to avail them. It is issued to you by the lender on your creditworthiness as a borrower. And hence, having an excellent credit score is a prerequisite for the approval of an Unsecured Loan.

Detailed explanation-5: -Personal loan It is the most popular unsecured loan in India, known for offering instant funds. Since this loan is unsecured, the interest rates are usually on the higher side.