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An unsecured loan is a type of credit that doesn't require any collateral like property or gold. Lenders approve these loans based on your credit score, income, and repayment history. They’re ideal for personal expenses such as weddings, medical emergencies, or education. Since there’s no security involved, interest rates may be slightly higher, but the application process is quick and hassle-free. If you have a good credit profile, an unsecured loan can be an excellent way to meet your financial goals without risking your assets.