Unsecured loans are loans that are not secured against property. The borrower does not have to offer collateral to obtain an unsecured loan. Unsecured loans are ideal for tenants since tenants do not own a house to put up as a security. Unsecured loans are ideal for those homeowners also who do not want to risk their property. Unsecured loans are risky for borrowers whereas secured loans are risky for lenders. In case of an unsecured loan, the lender may repossess the collateral if the borrower fails to repay the loan. The lender has to rely on the borrower