Unsecured loans, available to you from your bank or credit union, are a kind of contract or agreement which allows you to borrow a sum of money on the basis that the debt will be paid back to the lender by the agreed-upon timeframe.
You are not required to offer any security with an unsecured loan, although the lender does still have legal recourse to seize the money you owe them by some means if you are unable to
make the repayments. Lenders may, in some cases, arrange a County Court Judgement (CCJ) against you. This is a situation that you should try very hard to avoid if possible, as receiving a CCJ would be listed on your credit report.