A loan that is not secured by any assets is referred to as an unsecured loan. That means in the case of failure in terms of payment, the loan cannot be paid-off against any asset or by the guarantor. Unsecured debts are short-term liabilities, usually with shorter repayment periods.Utility bills, credit cards, medical bills, etc. are a few examples of unsecured debts. You don’t have to secure any asset or bring a guarantor while indulging in such short-term loans.