# Unsecured Credit Arrangement

**IRI:** https://folio.openlegalstandard.org/RCzYNAC22dds0d4cDTCJCzl

## Labels

**Preferred Label:** Unsecured

**Alternative Labels:**

- Unbacked Credit
- Unsecured Financing Arrangement

## Definition

An Unsecured Credit Arrangement is a financial agreement where the borrower does not pledge any assets as collateral for the loan. This type of loan relies on the borrower's creditworthiness and often results in higher interest rates and stricter borrowing terms due to the increased risk for the lender.

## Sub Class Of

- https://folio.openlegalstandard.org/RfuC0yNDKhOWj8FHvjuYyg

## See Also

- https://folio.openlegalstandard.org/R4zb5sPFXnaKI3joMOlkOd
- https://folio.openlegalstandard.org/RCATq2eFCZlAApMi05UJkWH
- https://folio.openlegalstandard.org/RrYc14SDMHyXfplFhiI2Ok

**Deprecated:** False