Unsecured Loan

An unsecured loan is a liability has no collateral.

Let’s say you loaned money to your son-in-law. You have an unsecured loan. If he doesn’t pay there’s nothing you could seize to try to get your money back. You would have to sue him to try to collect.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/unsecured-loan/