Definition, Meaning & Synonyms

uncollateralized

adjective

/ˌʌn.kəˈlæt.ə.raɪzd/

Definition

Not backed or secured by collateral.

Examples

Many startups rely on uncollateralized loans to fund their initial operations.
Uncollateralized debt can be more risky for lenders, as there is nothing to seize if the borrower fails to repay.
He decided to apply for an uncollateralized personal loan to consolidate his debts.

Meaning

In finance, uncollateralized refers to loans or debts that are issued without any asset being pledged as security. If the borrower defaults, the lender has no specific asset to claim as a safeguard against the loan.