Topic: Bank loans and securities. - page 5. (Read 758 times)

It is true that financial institutions have strict security measures in place when lending money. Generally, banks require collateral such as houses, land or other investment documents to support loans. If we apply for a loan worth $ 2,300 as you said above, at least there is an opportunity from us if it is estimated to have a value of approximately 85% of the loan value as collateral if I'm not mistaken.

I think it's important to remember that banks and other financial institutions are businesses that operate on the basis of risk assessment, and they have to protect their own interests. However, it is also a good idea to look into alternative loan options or seek professional advice to find a loan that fits your specific financial situation.

Hey OP, you confused me like I went to buy food and made them accept payment with a smile. Your comparison is unrelated, we can see the relationship between them is linked, but it is not something to be compared. And I think the problem from you personally is not enough to adapt to the way this life works, don't just demand but have the responsibility to comply and the obligation to do well. Or if you can afford it, show us your own way to change the world for the better.

A certificate has value to us, and a certificate of ownership of a house or car is different as it has a value in terms of cost, meaning the bank can resell it if you can't pay your loan, unlike our certificates, which no one will purchase. Both are not the same and shouldn't be compared as they are different, but the other thing you can show to a bank is your certificate of employment and your payslip, meaning you are capable of paying it over time and they can approve your loan.

They are financial institutions and they have a set down method of operation that these banks operate by, so do not just expect to easily get loans from them because you think you have some kind of collateral that they must accept.

The banks have met individuals before when taking loans from them was quite easy and these people ended up disappointing the banks, which prompted them to make the loan taking process more difficult for people to discourage people who are not serious and ensure that they can recover their money if the person taking the loan fails to meet the agreement to pay back.

If you want to get loan from bank then you have to give them your house deed or any valuable thing as collateral. You said education is worthless yes when you wanted to get loan from bank this certificate was worthless.  If this certificate is not given to get a job, if you pay money for the certificate, then you will not get a job. You have to show the certificate to get a job. So I think education has real value but you will get the value in the right place.

I think every financial institution that offers loans are guilty of this same habits, you can't blame the banks only. They have a business to run as such, they have to protect themselves at all times. The banks can't run because they're a public institute and can be easily punish but you taking the loan can default and there's nothing they can do if they don't have a valid collateral.

We also have cryptocurency projects that are offering loans guilty of this, they ask for collateral that are worth more than the loans and it still surprised me why people go for this loans instead of just saying the assets they already own. They can always buy back their coins when the market is down so why don't they just sell.

Are you kidding when get loan from the bank but school card ID for collateral to back up? in my countries we have higher values collateral to back up than with how much loan getting in the Bank. I think its realistic with Bank decision not giving loan although $2,300 because Bank need your house certificate but its seems impossible due all certificate not with your name.

Have some legal loan application in every country, not required with certificate house or your parent car but have higher loan interest than the bank and you need upload with document ID and getting selfie hold on ID card. Binance seems have loan system but required with collateral to back up as your assets and loan amount should under with assets holding in Binance and ability getting loan there, but still don't know detail with how many percentage loan interest.

I don’t know where you are but in North America you have a credit profile. Pay your bills on time and you have a higher credit score. With a higher credit score it’s easier to gets loans for less interest and more balance.

Some loans have collateral like a house or cars. However there are some like credit cards which don’t. For a small loan like yours there shouldn’t be any collateral really. However it might be different where you are located.

No one, including banks, will lend large amounts to someone who has no strong ability to repay the loan. As a student, he has no regular income because his focus is on education, so how will he repay the $2300 bank loan? So it is common that banks will not lend money to a student without any security.  You can submit your father's source of income and your father's permission letter to the bank as security, if your father is financially strong, then the bank will be willing to give you a loan of more than $2300.

And? Their requirements are existing for decades already. That's just how it works; being organized and structured. Loans cannot be done by trust alone, ofcourse they'll need assurance that you have the capability to pay what you are trying to borrow and that is just fine for me. If I were the bank institution ofcourse I'd do the same thing. And if this post is to show cryptocurrency advantage, then it is not. There are no loans and insurances for this industry; you lose, take the burden.
It is like borrowing to a friend and when asked when will you pay it, you'd just say "Just trust me, I'm gonna pay you back". Also, it is not only a few individual who are taking loans therefore, banks cannot let their money sleep on an individual who cannot give them assurance with the payment. They'd eye for those who can because of the interest, which gives them profit basically.

That's true, but on the 2nd thought, OP might have a chance of getting few thousands of unsecured loan from a bank if he was to open a business account for his new "startup".
I remembered from years ago, when I was opening business account in a branch, they were almost forcing me to take a business credit card with (if I remember correctly) £2,000 limit with zero personal repayment guarantee. The bank staff must've had a commission from each credit card sale. And that was after the credit crunch when banks were widely criticised for their loose approach to lending.
Not sure if things have changed since then, but maybe that's a way to go.

Exactly. There's no sense on giving out a loan on someone who do just present up some school certificate which same as you do said that they wouldnt really be having assurance or simply the security.
They cant just give and grant out loans without having those strict compliance of requirements or something that been needed. We do know on how banks do works and whats their process.
You do just make yourself that look like a fool on going into this place and just taking to have some loan but dont offer something as a valid collateral.
You wouldnt really be able to get on no matter what.

You sound very naive about how the world works and have a lot to learn, if anything about your story is even true. You are either taking a personal loan, which means that you are borrowing money and the bank has to trust that you will return the capital along with a fair payment on top - they are not working as a charity, their business is to make a profit between deposits and money lent out. Alternatively you might be seeking backing for a business, in which case your education (or school certs as you put it) could play a small part in showcasing your competency, however you will need a business plan to go with it that outlines what you intend to do with the borrowed money to make a profit.

What you explain is actually quite valid because banks usually look at assets that are easy to sell when they want to provide loans to their customers. And usually it consists of land assets, buildings such as houses, rice fields, and also private vehicles with a publication year that is not too long ago. All of this can be used as collateral by the bank if the customer is no longer able to repay the loan at the time determined by the bank itself.

Other conditions are also looked at in this case as you said where the bank will also see how much the customer's monthly salary is, which means the bank also wants to know where someone works so that they are confident in giving the loan. Because basically the bank also doesn't want to lose in this case, so apart from wanting to make a profit, you also have to look at the profile of the person who wants to lend them funds in more detail.

doesn't the bank really need collateral to give a loan to someone? and well of course a school certificate can't be a guarantee. because if you can't pay off the loan to the bank then what can the bank do to get their money back. there's no way they'd confiscate something they couldn't turn it into cash. Suppose the bank confiscates your school certificate. then what can the bank do with the certificate. none at all. a guarantee that the bank wants, of course, that has value and can be sold. so if you bring your land or house certificate, the bank will gladly accept it. because if you fail to pay off the loan, the collateral for the land certificate can make them confiscate the land you own and sell it to pay off your loan.

I think this does not mean they do not value an education. but educational certificates only become valuable when they are held by those who have the name on the certificate itself. and there's no way someone else will use the certificate in someone else's name.

but I think sometimes the bank does want greater collateral than what we borrow. for example if you have a land certificate and your land selling power is $100,000usd. then try to take it to the bank so that what you can get to borrow with the guarantee of the land certificate may only be 40-50% of the value of your assets. correct me if i'm wrong. because I never borrow from the Bank. but my parents used to do it. so I see things like that quite often.

The irony here is that plenty of governments will provide loans out for educational endeavors without realizing the educational institutions will raise their prices knowing that they have a young population that can be locked into a life long loan commitment with unlimited funds from the government. Perhaps the bank is doing you a favor, in the U.K. and U.S., students will graduate with tens of thousands of dollars in debt. The modern education industrial complex is a profitable endeavor depending on which end you're on.

Banks aren't entitled to give you a loan without valid collateral. An educational certificate represents earning potential, it isn't a guarantee.

It's funny, OP, who does that for Christ's sake, using a school certificate as collateral to get a bank loan? If you could use the school certificate to get yourself some groceries, it might be accepted. This is just one example of how it is not what you have on your certificate that is important, but what you can offer from your brain when called upon to solve a problem. Education is a part of you, but it is not what defines who you are.


Those stringent measures are what keep them in business today; if there were fewer rules or regulations on how to obtain a loan, they would have gone bankrupt within a short period of time. Will you approve a loan with what you brought as collateral if you were in their shoes?

You're missing the point, buddy! The bank won't lend you money even if you have a nice paper. They want to see your dance skills. You're worth it if you can dance. School, right? It's pointless. Quit your job and become a TikToker!

But seriously, schooling is crucial for personal growth. You learn to think critically and communicate well. It's a terrific opportunity to meet new people and learn new things. Don't dismiss school, my friend. Though it won't make you rich, it can improve you.

Banks and financial institutions often require collateral to cover the risk of your loan. Common collateral includes homes, cars, or valuable investments like stocks or mutual funds. However, owning a certificate of study is not considered dynamic collateral, as it is not valid enough to secure your loan. This means you need to look for other assets to secure your loan.

If you want to get a loan from a bank or financial institution, you need to meet the salary, property and credit profile requirements. But you may also be confused about material relationships in life, and money should be viewed as a tool to bring balance to life. And do not bring your own thoughts to equate everything is working like that.

A few days ago I went to the bank for a loan and asked them what documents to submit for the loan.  Then I was asked to submit any document of my property or any document of my own house or any institution.And they also say you need to keep active transactions with our bank for 4 to 5 months.  Banks will not give loan based on school certificate.If you always think about the value of education in financial terms, you have to think about the value of education differently.  Their guarantee is the only asset document and that is actually the protocol for making loans.$2,300 is a large amount to never pay based on your certificate.  So you must follow their protocols to take loan.