Unsecure Loan/Business Loan/Loan against paper
Unsecured loans are loans that are approved without the need for collateral. If a borrower defaults on the loan, the lender is left with few options to get paid outside of filing a lawsuit.
The main advantage of an unsecured loan is the decrease in risk. If you receive an unsecured loan and can't make payments, you don't risk losing your assets; you just put your credit score at risk.