The foundation for a decision on an unsecured mortgage is creditworthiness.
What are unsecured loans?
An unsecured mortgage is a mortgage that does not require any form of collateral.
Instead of counting on a borrower's property as security, creditors approve unsecured loans primarily based totally on a borrower’s creditworthiness.
Unsecured loans—occasionally called signature loans or non-public loans—are accepted without the use of belongings or different property as collateral.
The terms of those loans, consisting of approval and receipt, are most usually contingent on a borrower’s credit score. Typically, debtors should have excessive credit score ratings to be accepted for unsecured loans.
An unsecured mortgage stands in comparison to a secured mortgage, wherein a borrower pledges some form of asset as collateral for the mortgage.
The pledged property is the lender’s "security" for presenting the mortgage. Examples of secured loans consist of mortgages and automobile loans.
From the above announcement, it's clear that choice B, Creditworthiness, is the appropriate answer.
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