Signature Loan

Unsecured loan requiring only the borrower's signature on a loan application. The lender agrees to make the loan because the borrower has good credit standing. Collateral is not required. Also known as a good-faith loan or character loan.

Unsecured loan backed only by the borrower's signature on a Promissory Note. No collateral is taken by the lender. These generally are loans to individuals with good credit standing who are known by the lending officer. Also known as a good faith loan or character loan.