What is an unsecured bank loan?

What is an unsecured bank loan?

What is an unsecured bank loan?

An unsecured bank loan is different to a secured bank loan in that the restrictions on the lending criteria that the borrower must meet are typically less stringent. Whereas a secured bank loan is usually a long term loan such as a mortgage or student loan, for which the lender is placed at a considerable amount of risk, an unsecured loan is a short term solution that is normally repaid over a period of one to five years. This means that lenders can relax their application criteria somewhat, and approve loans for borrowers with no collateral. We provide unsecured short term loans of up to R150,000 to applicants even without good credit.