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Investments glossary

Unsecured


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Quotes of the day:

Those noble men who falsehood dread In wealth and glory ever grow, As flames with greater brightness glow With oil in ceaseless flow when fed.

— Sanskrit Proverb

Unsecured loans or lines of credit (LOC) are loans where lending happens without the backing of equal value collateral. Collateral is property or other valuable assets which a borrower offers as a way to secure the loan. In an unsecured loan, the lender will loan funds based on other borrower qualifying factors. These qualifying factors include the credit history, income, work status, and other existing debts.


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