Glossary
Welcome to SFNet's Secured Finance Glossary of industry terms. Currently the SFNet Glossary has over 400 industry terms and definitions. You can search specific terms in the search tool above, or use the alpha tool below and progress on the paginations.
Unsecured Loan 
An Unsecured Loan is a loan that is issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan, and it is also called a signature loan or a personal loan.
Unsecured vs Secured Notes
If a borrower defaults on a Secured Note, the assets it has pledged as collateral can be sold to repay the note. With an Unsecured Note, the borrower does not pledge any assets as collateral, so it typically pays the lender a higher interest rate in order to compensate them for the increased risk.
Unused Line Fee
Also known as a commitment fee, an unused line fee is a banking term used to describe a fee charged by a lender to a borrower to compensate the lender for its commitment to lend.
Useful Life
Useful Life is the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.
Usury
Usury refers to interest rates that are significantly above current market rates. These are often higher than the rates allowed by law and are often charged by unsecured lenders.