What is an unsecured loan?

What: An unsecured loan is a type of personal loan that does not require collateral.
Why: It's often used for smaller amounts, typically up to **$50,000**.
Signal: Interest rates may be higher due to the lender's increased risk.
Target: Unsecured loans can be used for various purposes, including debt consolidation and home improvements.
Risk: Borrowers with poor credit may face higher interest rates or stricter repayment terms.