A non-collateral loan is an unsecured loan without any collateral to back up the loan. A non-collateral loan is based on good faith and a good credit history, which is a higher risk for a lender. For this reason, non-collateral loans have higher interests rates and less flexible terms. A collateral loan, however, is a secured loan backed by some form of assets such as treasury bonds, stocks, certficates of deposits, real estate, and vehicles.