A Rhode Island unsecured promissory note is a formal agreement in which a borrower pledges to repay a lender a specified sum, along with interest, within a set period. Because of its unsecured nature, it doesn’t require the borrower to provide collateral. Instead, the lender conducts a thorough assessment of the potential borrower’s creditworthiness to determine their suitability.
Even when the lender checks the borrower’s credit history and reviews their financial history, the lender still assumes a higher level of risk. The greater exposure of risk is due to the absence of collateral, which means there are fewer safeguards against non-payment.
