Unsecured loans

Unsecured loans are designed to help people who have no security to offer. By security we mean a house or a car. Unsecured loans usually have a slightly higher rate of interest attached to them but that is simply because the bank or lender will be taking on a bigger risk by lending to you.

Simply put, if you do not meet your payments on the unsecured loan, then the lender will be unable to repossess anything in lieu of the debt, hence the term, an unsecured loan.