unsecured loan

(redirected from Unprotected Loan)
Also found in: Wikipedia.

Unsecured Loan

A loan that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. This means that an unsecured liability carries no collateral; in case of bankruptcy, the bondholder is considered a general creditor. Thus, the bondholder is paid out of funds that do not have a prior claim on them with a secured debt. Like most bonds, an unsecured bond is tradeable. Some unsecured bonds, such as Treasury securities, are considered risk-free.

unsecured loan

money BORROWED by a company or individual without offering any COLLATERAL SECURITY to the lender.

unsecured loan

A loan without collateral.