A non-recourse loan is a type of loan in which the borrower is not personally liable for the repayment of the loan. Instead, the lender can only seek repayment from the collateral that was pledged to secure the loan.

In other words, if the borrower defaults on the loan, the lender can only take possession of the collateral (such as property or assets) that was pledged as security for the loan. The lender cannot seek further compensation from the borrower's personal assets or finances.

Non-recourse loans are often used in commercial real estate and other large-scale projects, where the collateral for the loan is the property or asset being developed or acquired. These types of loans may have higher interest rates and stricter underwriting requirements than traditional recourse loans, due to the limited liability of the borrower.