An "unsecured" loan is one
A) with no stated collateral.
B) that is pending approval by a bank loan committee.
C) which has collateral.
D) in which the borrower is delinquent in loan payments but has not formally defaulted on.

Question

Quizplus · Accepted Answer

An unsecured loan is a loan that does not have any collateral attached to it. Therefore, choice A is the best answer since it accurately describes an unsecured loan. Choice B refers to the loan approval process and is not specific to unsecured loans. Choice C refers to a secured loan, which is the opposite of an unsecured loan. Choice D refers to delinquency, which is not unique to unsecured loans.

An "Unsecured" Loan Is One