An absurd policy - page 3. | Bitcointalksearch.org

Tomatocage

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brb keeping up with the Kardashians

Quote from: jonanon on July 20, 2014, 05:19:08 AM

Firstly I have no interest in getting a loan!

I like to scan through the site and have been reading lots of topics of people offering loans demanding 120% collateral, while it is up to the lender to create the terms it just seems to be a risk free way to lend - I am of the understanding that it is the lender who should take the risk, hence why charging interest.

Just my (worthless) opinion.

If you really scanned this section, you would have noticed a bevy of loan requests offering 20-50% interest, so demanding 120% collateral is well within the norm.

Yeezus

full member

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I don't understand why most people lend or borrow money on here. To lend it without collateral is nuts and you'll get scammed eventually even if it's just a small amount and why people lend the little amounts they do with high interest is also silly. I think most of the time people just do these deals to build up some feedback and scam later.

ranochigo

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Quote from: jonanon on July 20, 2014, 05:19:08 AM

Firstly I have no interest in getting a loan!

I like to scan through the site and have been reading lots of topics of people offering loans demanding 120% collateral, while it is up to the lender to create the terms it just seems to be a risk free way to lend - I am of the understanding that it is the lender who should take the risk, hence why charging interest.

Just my (worthless) opinion.

There are threads which offers no collateral loans. They have a few defaults. The purpose of collateral is to reduce the risk of default. Lenders aren't charging high interest, a few loans isn't going to cover one default. It would be a almost certain chance of defaults. Not much lender actually want your collateral. If you default, they wouldn't want to keep it, hence they ask for 120% collateral so they can sell it if you default. The additional 20% is to reduce the risk of alt coin falling below 100% of the loaned value. There isn't use for a lender to ask for 100% alt coin value of bitcoin when alt coin isn't that stable by logic. If they can't get at least 100% of what you loaned in case you default, why would they want to loan you.

Justin00

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If it makes you feel better, most of the people offering loans and asking for collateral are "collateral scammers" i.e they are not going to loan anything, once you give them collateral so they can give you a loan you will not here back from them again.

Regardless, lenders can ask for anything. But, again, most people asking for loans are scammers. So it is pretty high risk.

I am yet to see any one actually use collateral to get a loan.

jdany

hero member

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Inspired

Most of us are not a pawn shop, and really don't want to own your collateral.
If it happens, it's a hassle and 120% collateral probably wouldn't be enough to make me happy about doing it.

Unless by some miracle, the collateral was something I wouldn't mind owning, then, I would take a more conservative 1:1 approach on covering the loan.

KWH

legendary

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In Collateral I Trust.

Quote from: Soros Shorts on July 20, 2014, 07:31:32 AM

Quote from: jonanon on July 20, 2014, 05:19:08 AM

Firstly I have no interest in getting a loan!

I like to scan through the site and have been reading lots of topics of people offering loans demanding 120% collateral, while it is up to the lender to create the terms it just seems to be a risk free way to lend - I am of the understanding that it is the lender who should take the risk, hence why charging interest.

Just my (worthless) opinion.

120% collateral does not make sense, unless it is in the form of highly illiquid assets.

Often highly volatile coins or other risky items have been offered, hence 120%. OP, no one is forcing you or anyone to get a loan and the lender should NOT take all the risk or there will not be many lenders left. Look through the Scam section at the loan defaults.
You don't want to give 120% of a loan in collateral, (that you get back once loan is repaid), don't ask for a loan from that lender. Simple.

Soros Shorts

donator

Activity: 1617

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Quote from: jonanon on July 20, 2014, 05:19:08 AM

Firstly I have no interest in getting a loan!

I like to scan through the site and have been reading lots of topics of people offering loans demanding 120% collateral, while it is up to the lender to create the terms it just seems to be a risk free way to lend - I am of the understanding that it is the lender who should take the risk, hence why charging interest.

Just my (worthless) opinion.

120% collateral does not make sense, unless it is in the form of highly illiquid assets.

HarmonLi

sr. member

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Honest 80s business!

Quote from: ?? on ??

My friend used btcjam and scammed 0.7 BTC.

Wow, so actually he scammed someone for 0.7 BTC or did he get scammed for them? That wouldn't be an honest was to do business then! I don't approve!

Ninietz

member

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Quote from: jonanon on July 20, 2014, 05:19:08 AM

Firstly I have no interest in getting a loan!

I like to scan through the site and have been reading lots of topics of people offering loans demanding 120% collateral, while it is up to the lender to create the terms it just seems to be a risk free way to lend - I am of the understanding that it is the lender who should take the risk, hence why charging interest.

Just my (worthless) opinion.

Is it to both parties to find a middle way with which they are both happy and can work with ?

jonanon

full member

Activity: 154

Merit: 100

Firstly I have no interest in getting a loan!

I like to scan through the site and have been reading lots of topics of people offering loans demanding 120% collateral, while it is up to the lender to create the terms it just seems to be a risk free way to lend - I am of the understanding that it is the lender who should take the risk, hence why charging interest.

Just my (worthless) opinion.

Topic: An absurd policy - page 3. (Read 3315 times)