Topic: Bank loans and securities. - page 2. (Read 764 times)

Well bank offer personal loan and credit cards that is the most common unsecured loan for a common man to reach out.

Banks only lend money to someone who has the capability to pay back or assets to confiscate for the default of the loan amount and yes these certificates are nothing but garbage it doesn't worth penny but you spend thousands of dollars and years of schooling to get that. The system made all of us to live stupid and die stupid too.

You are mistaken in understanding the function of a diploma, a school certificate will have value when you apply for a job but not for applying for a loan at the bank. Even though there are financial institutions that accept diplomas as collateral for securities, making diplomas as collateral to get money is not the right choice, in fact this choice has a high risk for your future career. Just imagine when you can't pay off a loan as a result of using a diploma as collateral, you can't apply for a job without a diploma.

Before making a loan, you must need to have a good credit background to make sure it faster to mak loans; for example, you have a failed loan or credit scoring into different banks, they will see those with the use of their bank association checkers if that so that you have a bad credit the lessen the chance you'll get a loan to them, it's not just because you have a bank account you can easily make a loan to them, still consider the credit scoring. If they will allow you to make a loan just a small amount until your realized credit score gets a good reflection to loan higher amount like you OP asking.

I do not know in which country this happens, but if it is Europe or the USA, then this amount is less than the average salary.
Banks make a decision depending on the official salary of a citizen and his debt burden at the moment.
Loans like this require good friends, not banks.

It's part of business and for any financial organisation to endure this current financial crisis rocking the world today then you need to strictly adhere to the laws of capitalism and that's what the bank is doing by making sure you bring in a collateral that is worth in equal or above the amount you seeking for as loan.  Perhaps something accidentally happened to you, like a car accident ( which I don't wish you any) and you got into a worse help condition that you can't work anymore. How then can the bank regain their $2,300 they offered you as loan with your certificate as collateral, cause from all indication no one will be ready to buy a school certificate bearing another's name for such amount. And what now happens to the bank in the next 5years if they keep doing business that way?
They're a capitalist venture, all out for profit and was never established in your best interest. Never trust the bank.

Even small loans, they usually still ask for official collateral. Because still, the bank system cannot be softened just because it is based on the nominal amount borrowed. My neighbor some time ago applied for a loan at the bank. and the money they borrow is not very big. And they borrow from the bank with the guarantee of the motorbike certificate they have. and it's fast processing. The point is that collateral can be adjusted according to the amount of the loan submitted. if the loan is large then the collateral must also be of great value and vice versa. basically everything needs collateral.

and of course the collateral must be worth greater than the money to be borrowed, the prudence of the bank is no longer in doubt even though there is a markup on the value of the collateral and eventually it becomes bad credit. there are many cases like that so that banks must be more careful in choosing customers by considering future risks if something unexpected happens. but it will be facilitated if we already have a good track record at the bank

Banks typically require collateral that has a tangible market value and can be easily liquidated in case the borrower was not able to pay the loan. While school certificates may represent a certain level of education and achievement, they do not have any inherent market value and cannot be easily sold to recover the loan amount. The value of a school certificate may vary widely depending on the institution and the course of study, making it difficult for banks to assess its true worth. Banks have to comply with regulatory requirements and risk management policies that dictate the types of collateral they can accept. These policies are designed to minimize the risk of default and ensure that the bank can recover its funds in case of default. Accepting school certificates as collateral may not meet these requirements and could expose the bank to unnecessary risk.

By borrowing so much money in the bank, of course they are also very careful in determining securities guarantees, because they do not easily trust customers who have borrowed and they have a big responsibility so as not to lose in these problems so I think the certificate cannot be sufficient to get a loan at the bank, I think bank regulations are feasible and this is for the security of their institution from fraud, If the amount of money you borrow is small, maybe they can consider it without having to use securities guarantees.

Most likely, for this just need to contact a bank that is focused on issuing consumer loans, everything is much easier with issuing loans there. But for this you will need show your earnings, because even with a good credit history without your income statement, a loan will not be issued. The diploma in this case will be useless, since it does not carry any value for the bank. And collateral may be required if you want to take a large loan, for small loans this is unnecessary.

A school diploma is not necessary to obtain a loan from a bank; if it were, it would undoubtedly be declined.  That is all I am aware of regarding job application requirements, though.  Maybe it will apply if you mortgage it to a pawnshop or borrow money from one.  Banks require collateral, applying for a loan is difficult, and loans of any size require land, home, or company certificates in addition to car certificates.

Until now I have never heard that there is collateral for loans at a bank, even with the highest degree, but I think I have heard of a letter of appointment as an employee that this can be done and of course the mechanism for each bank is certain to be different from one another. if someone accepts it maybe with separate rules with the company no longer an individual anymore.
but it seems inappropriate for a certificate to be submitted as collateral for a loan at a bank, because there are other things that can be done.

I don't fully understand, you tried to get a loan against your college education certificates? These are no real assets and I don't think any bank would consider them a security. The value in education is that we can get better jobs later and earn more money. So the real assets are your future salary. If you are already working then it should be no problem to obtain a loan against your monthly salary. Make sure to ask for a consumer loan that should be sufficient for 2,300 USD and show them your monthly paycheck from your employer. For such a small amount it seems crazy to ask for a property as collateral, because all the fees involved and notary cost to put the bank down as beneficiary will cost more than the whole loan itself. Maybe you should consider switching the bank to one that is more focused on consumers.

Banks basically work this way to issue a loan, they need to know that you have collateral for this, or an operating business, or a stable source of income with a good credit history. Although the credit history may be considered acceptable, even if payments with a delay were eventually closed. Perhaps with small loans everything is not so difficult, but if the loan amount is large, then it will not be so easy to get it from the bank.

That's how they run their business. What you are referring to is an unsecured loan, which they cannot simply grant unless you have established a reputation with their company. Unsecured loans are typically limited and depend on your income. Usually, they are set up with automatic payroll deductions, where a specific company has an agreement with the bank to remit your payments directly.

If you are looking to obtain a higher loan amount, you would fall under secured loans. In this case, you would need to provide valuable assets that will be assessed to determine their current market value. The loan amount granted will be lower than the market value, as they need to manage their risk.

This is just a system to keep the poor poorer and make the rich richer. Also it's kinda makes sense too if you look at it from a different perspective. If you lose all the money you have taken from them and there's no way you can pay them back, how can they trust you with that much money?
Everything has it own place where they can shine. Have you seen those games where you have to fit the right piece in the right position? Otherwise, you can't put it in. Likewise, education has it own value in its own position. You can not compare it with properties while taking loans from banks. Use it where it's meant to be used.

Let me say in my country, banks find it very difficult before they can issues you a loan to start life with, and before bank can give you a loan you have a property for collateral and without that banks will not issues you money, it depends your country, banks make sure that they have given anyone who wants to take loan from into their own personal condition.

It depends on a bank, I think... And also banks can have specific features in different places and countries. In some locations borrowing $2300 requires just crossing the doorstep of a branch, while others ask a really heavy bunch of documents for a smaller sums. As for education... You wrote the sad truth... Unfortunately, education is not important in the world of money

I want to add Another reason why banks need collateral for loans is to protect themselves from the risk of default. When a bank approves a loan, they are essentially giving someone money that they expect to be paid back with interest over a certain period of time. This means there is always a risk that the borrower will not be able to pay back the loan, either due to losing a job or experiencing financial difficulties for some other reason.

By requiring collateral, banks can mitigate some of this risk. If the borrower defaults on the loan, the bank can take the collateral and sell it to recover some or all of the money they lent. This helps protect banks from losses and ensures that they can continue to lend money to other borrowers in the future.

You are right, bank is a business that needs to manage risk and ensure profit. That's why they ask for collateral as a way to reduce their loan risk. However, the current system may seem flawed to some people, especially those who don't own traditional collateral such as a house or car.


For this point, at least the banks have also thought that they should also think creatively and offer more alternatives for people who do not have traditional collateral. I think, This will help promote financial inclusion and allow more individuals to access credit.

Banks like any other business are only going to make a move if they think they can getting something out of it, and it is obvious that if a person does not really have any kind of collateral and they cannot demonstrate they have a high enough income in order to pay the debts they are acquiring then the bank has no reason at all to loan that money, we may not like it but that is just the way banks work, and if anything I expect that banks are going to get more strict from now on as they do not want to take any risk with economy not doing as well as it was predicted.