Unsecured Loan

A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.

Investopedia Says:
Generally, a borrower must have a high credit rating to receive an unsecured loan. Commercial paper is an example of an unsecured loan.

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Loan granted on the strength of the borrower's credit history or reputation in the community, earnings potential, and other assets owned, even if unpledged, rather than a pledge of assets as Collateral. Assignment of collateral, as in a Mortgage is not required. The borrower signs a Promissory Note stating the terms and conditions under which the loan will be repaid. The lender may ask a Co-Maker or Guarantor to sign the note, pledging to repay the loan if the borrower defaults. Also called a character loan or good faith loan. See also Five C's of Credit; Side Collateral.

A debt that has no Collateral or Security.
Example: When Sam needed some cash to make repairs to his house, he went to the bank and got a small unsecured loan by signing a loan agreement and letting the bank check his credit report. The bank could not place a Mortgage Lien on his house.