If I have collateral why should I ask for a loan

jonsi

legendary

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Quote from: heshamfx on March 13, 2020, 10:32:04 AM

I am just wondering about (No collateral , No loan) for me If I have collateral for ex 1 Btc I will not ask for a loan
because I will convert it to usd so I have money no need to ask for a loan

Undecided

Think of it as going to the pawnshop. You have some assets that you don't want to sell but you need money for a short period of time. You can guarantee with those assets that you will return the money to the lender and you will get your assets back.

If you don't want your assets back than you can just sell it and you have no need for a loan. This is exactly the reason that users who try to sell their collateral and also try to "borrow" money guaranteeing with the same collateral are given negative feedback.

heshamfx

newbie

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Quote from: Viscore on March 14, 2020, 07:30:08 AM

Lender would love to lend on borrowers will collateral, and in your case since you are a newbie and you have not build your reputation yet, you are not entitled for a non collateral kind of loan. If you have btc and you borrow altcoins, that's alright, but based on the terms i have see is that your collateral should 120% of value higher than the amount of loan you'll request.

Yeah I understand this I don't know about collateral before I enter this site. I respect all the opinions and welling to build a good reputation in the future.

Viscore

hero member

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Lender would love to lend on borrowers will collateral, and in your case since you are a newbie and you have not build your reputation yet, you are not entitled for a non collateral kind of loan. If you have btc and you borrow altcoins, that's alright, but based on the terms i have see is that your collateral should 120% of value higher than the amount of loan you'll request.

heshamfx

newbie

Activity: 25

Merit: 0

Quote from: PrimeNumber7 on March 13, 2020, 06:24:50 PM

If you have a car, why would you take out a car loan? If you have a house, why would you take out a mortgage? If you have a rental property, why would you take out a mortgage against your rental property?

Probably the most analogous to most loans taken out on this forum, if you have a stock portfolio, why would you take out a margin loan?

Answer the above questions, and you will understand why someone with collateral might take out a loan.

If I have a car I will not ask for a loan to get a car why should I do this. I can see the collateral is like insurance that the money will return back to the lender but from my point of view I see the collateral dose not make any thing. I can not take money unless I have a big amount of collateral so If I have a big collateral I will use it for my profit making a good money from it.

Thanks

heshamfx

newbie

Activity: 25

Merit: 0

Quote from: UserU on March 14, 2020, 02:42:31 AM

From a borrower's prospective, you'd want someone who instantly has what you want or need, right? Or else why would you come to the Lending subforum? That should answer your question

In other words, rather than sourcing from A - Z by yourself, let someone do the work for you.

I know that every one has his own concern and collateral is like insurance for money to return but my wondering was if I have the amount I need as collateral why I ask for a loan. I enter this subfroum to see how this work I don't know about collateral.

Thanks for your opinion

UserU

hero member

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From a borrower's prospective, you'd want someone who instantly has what you want or need, right? Or else why would you come to the Lending subforum? That should answer your question

In other words, rather than sourcing from A - Z by yourself, let someone do the work for you.

PrimeNumber7

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Amazon Prime Member #7

If you have a car, why would you take out a car loan? If you have a house, why would you take out a mortgage? If you have a rental property, why would you take out a mortgage against your rental property?

Probably the most analogous to most loans taken out on this forum, if you have a stock portfolio, why would you take out a margin loan?

Answer the above questions, and you will understand why someone with collateral might take out a loan.

actmyname

copper member

Activity: 2562

Merit: 2504

Spear the bees

Quote from: heshamfx on March 13, 2020, 11:10:11 AM

This is a good answer and I see it is right but even though I can do this sell it and making some money and then buy it again. But you know maybe the price won't go maybe go down.

your answer convince me but my opinion is sell it make some money and then buy it again this is better than get a loan while you have money

Thanks

If you take the perspective of an orthodox/conventional loan outside of the forum, some individuals might have assets that are held up or locked in some way. Though collateral requirements here require liquidity, it may be that users don't want to exchange (factors like KYC, convenience, etc. impact this) their collateral or that they simply want to keep coins in their current form for a coin-specific reason. A wild example (but possible) would be that of a PoS coin, wherein a user wishes to deprive the ecosystem of the potential stake amount that they would relinquish if they were to sell it to another user/exchange.

heshamfx

newbie

Activity: 25

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Quote from: AlexSimion on March 13, 2020, 11:02:18 AM

Isn't it quite obvious though ? Anyway I will break it down for you.

As per your example . you have 1 BTC, and you need fast lets say 4000 $ worth of ETH for 2 months . You know that possibly in 2 months your 1 BTC will be worth more , and you don't want to sell it today , thus the reason why people prefer to take a loan with collateral instead of selling it.

This is a good answer and I see it is right but even though I can do this sell it and making some money and then buy it again. But you know maybe the price won't go maybe go down.

your answer convince me but my opinion is sell it make some money and then buy it again this is better than get a loan while you have money

Thanks

AlexSimion

full member

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Isn't it quite obvious though ? Anyway I will break it down for you.

As per your example . you have 1 BTC, and you need fast lets say 4000 $ worth of ETH for 2 months . You know that possibly in 2 months your 1 BTC will be worth more , and you don't want to sell it today , thus the reason why people prefer to take a loan with collateral instead of selling it.

heshamfx

newbie

Activity: 25

Merit: 0

I am just wondering about (No collateral , No loan) for me If I have collateral for ex 1 Btc I will not ask for a loan
because I will convert it to usd so I have money no need to ask for a loan

Undecided

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