What type of loan allows a borrower to maintain a compensating balance at the bank instead of putting up collateral?

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An unsecured loan is a loan that does not require collateral, meaning the borrower does not need to pledge any assets to the lender. Instead, the borrower's creditworthiness is evaluated by the lender. In some cases, the lender may require the borrower to maintain a compensating balance at the bank, which essentially means that the borrower keeps a certain amount of money in a bank account to offset the risk of default.

What Type of Loan Allows a Borrower to Maintain a Compensating