loans. It can be taken for various purpose such as a wedding, traveling, paying education fee, medical emergencies or any undefined reason etc. The interest paid on a personal loan is in most cases higher than that payable on secured loans. Consumer durable loan – In the retail sector or e-commerce, a growing number of merchants have embraced point-of-sale financing. It is commonly called consumer finance. On the spot no-cost EMI option is given. Even though, as per the rules and regulations of specific countries, there can never be no cost EMI option. Any lending institute is bound to take interest in some form or the other from you. Student loans – This common type of debt is considered unsecured in many countries, because the loan is usually taken by a student (usually from a graduate or undergraduate level) or the student's parent / legal guardian to pay tuition fees for the student. The borrower is usually expected to pay back the loan after completion of the course and securing a job. Due to the obvious uncertainty of the student to be able to find a job after completion of the course (or at times, even finish it), lenders have very strict criteria for this product. The loan is only given after the lender assesses the student's academic record, the type of course the student is wishing to pursue and the quality of the university / institute where the student has secured admission for the aforementioned course, in addition to other standard criteria such as the guarantor's credit history, bank account statements, assets and holdings, etc. However, in rare cases, the borrower (usually a parent / legal guardian) of the student can pledge assets against the loan, thereby making it a secured loan. In recent times, a lot of salaried professionals also take loans to complete part time courses or certifications. In such cases however, the loan is not considered to be a student loan – it is simply categorized as a general personal loan. National differences United States Failure to make a payment on an unsecured debt may ultimately result in reporting the delinquent debt to a credit reporting agency or legal action. However, a nongovernmental unsecured creditor cannot seize any of your assets without a court judgment in the U.S. A creditor must file a complaint in state or federal court before a judgment can be made for