A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.

Unsecured Loan

What Is An Unsecured Loan?
As the name suggests Unsecured Loans are not guaranteed or protected loans against any property or any kind of security. A secured loan is usually secured on your property, means that if anything goes wrong and you can't repay the loan, you could have to sell your house to repay the debt. With an unsecured loan, the lender has no legal charge over your property.

An unsecured loan can be used for almost anything - a relaxing holiday, a new car, a wedding, debt consolidation or home improvements. Whatever you need it for there are a few things to consider before applying for an unsecured loan

Unsecured personal loans, especially bad credit unsecured loans, are more risky for the provider. Because of that the APR on these loans are usually high. The amount you can borrow in your online loan usually depends on your credit record and salary. If your loan is unsecured and you don't pay on time, your credit can be adversely affected, but you aren't in danger of becoming homeless or a public transit advocate

Unsecured loans are usually offered by banks, building societies and also by the larger supermarkets chains.

Why this type of loan is needed?
It's sometimes necessary to go after an unsecured personal loan to get that money we need. whether it's for education, debt consolidation, or even a much needed vacation. The idea of this insurance is to provide some cover if you run into payment difficulties through unemployment, illness, or accident. If you want to raise money for most purposes but do not want to offer your home as security then an unsecured loan could be the solution.

No matter why you need a loan, the best thing you can do is shop around to find the best loan for your needs. And the best place to do that is online.
Why Online?
looking online for an unsecured personal loan is the fastest and most convenient way to find exactly what you're looking for. The Internet also offers you a sufficiently large number of loan options, since most online loan sites are tied to many different lenders.

Who Applies for this type of loan?
Usually People who aren't in a position to offer collateral or those with adverse credit records, county court judgments, mortgage arrears or debt issues applies for unsecured loans.
To sum up ,Unsecured loans are invariably more expensive than secured loans because the lenders have no guarantee that you can repay the loan, and therefore charge you more in interest to cover the cost of insurance policies that they need to take out to protect them should you default on repayments.