unprotected lending
[/ˌʌnprəˈtɛktɪd ˈlɛndɪŋ/]
noun
empréstimo desprotegido
1. A loan or credit extension granted without collateral, security, or legal guarantees to protect the lender in case of default
Banks are increasingly cautious about unprotected lending to small businesses due to high default rates.
Os bancos estão cada vez mais cautelosos com empréstimos desprotegidos para pequenas empresas devido às altas taxas de inadimplência.
2. Credit provided based solely on the borrower's creditworthiness and ability to repay, without physical assets pledged as security
Unprotected lending relies heavily on credit scores and income verification.
O empréstimo desprotegido depende muito de pontuação de crédito e verificação de renda.
3. In banking regulation, loans that lack appropriate risk management safeguards or legal protections for creditors
The financial crisis revealed the dangers of excessive unprotected lending in the mortgage sector.
A crise financeira revelou os perigos do empréstimo desprotegido excessivo no setor hipotecário.
Unprotected lending became a critical issue in both the USA and Brazil following financial crises. In Brazil, discussions about 'empréstimo desprotegido' gained prominence after the 2008 global crisis and remain relevant in Central Bank regulations. The term reflects regulatory concerns about consumer protection and financial stability in both markets.
NYC Slang
no-collateral loan; unsecured credit
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