A Maine unsecured promissory note is a contract between a lender and borrower, where the borrower agrees to repay the loaned amount by a specific date. However, unlike secured loans, there is no collateral involved in unsecured loans.
As a result, lenders often require high credit scores and charge higher interest rates to mitigate the risk of default. In case of a default, the lender has limited options to recover the unpaid balance and may opt for legal action or a collection agency.
