Er... what are unsecured
loans?
Where do you see this?
In finance and banking-related articles.
What does it mean?
The term refers to money that you can borrow without having to
put up an asset such as a car or property as collateral.
Credits cards and personal lines of credit are the
most common examples of unsecured loans. Other examples are
education and renovation loans.
Why is it important?
Such loans usually come with higher interest rates as this is a
riskier business for lenders, who may find it harder to recover the
loans if you do not pay up. Lenders check your credit history to
find out if you are a high- or low-risk borrower, so it would be
harder for you to get this type of loan if you do not pay your
bills.
So you want to use the term. Just say...
"It was very difficult to get an unsecured loan from the banks
during the global financial crisis, so I had to cut down on my
luxury watch purchase."
Invest, The Sunday Times, October 20, 2013, Pg 42