An unsecured loan is where the borrower doesn’t asign any asset to the lender as security for the loan.
In these circumstances the loan represents a bigger risk to the lender and so the interest rates tend to be higher and the size of loans lower than in comparison with secured loans. The typical amounts you can borrow on an unsecured loan are normally in the £500 - £25,000 range.
Tenant Loans and Personal Loans are both forms of unsecured loan.
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