A Maryland unsecured promissory note is a legal document that outlines the conditions of an unsecured loan. Unlike a secured note, it doesn’t involve collateral. Since an unsecured loan carries a high risk for the lender, they often charge higher interest rates.
To reduce the chances of default, the lender verifies the borrower’s credit history, employment status, and references. The note covers payment types, interest rates, and time frames, but the lender should only work with borrowers with a high credit score or who are known personally.
