A South Carolina unsecured promissory note is a contractual agreement outlining the specifics of a loan between the borrowing and lending parties without the requirement of collateral. This note clearly specifies the repayment term, interest rate, and protocols for handling situations where the borrower might default on the loan.
Due to the absence of collateral, these types of loans inherently carry a higher level of risk for the lender, often resulting in higher interest rates in comparison to secured loans. If the borrower defaults, the lender has limited options for recovering the losses. For example, they may need to pursue legal action or employ the services of a debt collection agency.
