Topic: Is the need to be known a requirement to qualify for a loan(s)? - page 2. (Read 824 times)

The lender has the right to reject your application if it is deemed that you do not meet the requirements for getting a loan. The bank will not just give out the money without supporting complete documents when you apply for a loan. They will also inspect your business location and check the ownership of the business, once everything is deemed valid, they will disburse the loan with certain conditions.
In this forum you can get a loan without having to attach your real identity, here the priority is trust. If the lender trusts you, the loan will be disbursed, and vice versa, the lender can reject your application for reasons that cannot be stated to the public.

you’d be surprised by how a lot of people doesn’t use this logic for them if you gave it willingly how can it be stealing? some people are really shameless and have no problem in taking money from others and not paying it back on the other hand some people might really not have the means to pay you back if they had the money they wouldn’t be asking someone else for money in the first place


most of the time it’s our friends and family members who ask for money so it’s hard to apply this kind of agreement but this is smart and would take note of this from now on

thats true, trust is often valued really high when it comes to business like this, after all business is often just based on trust and thats it.
building reputation might be difficult for many but it is indeed the requirement if we want to further advance our business, building reputation is really essential.
moreover the fact that banks nowadays won't really trust anyone that gets defaulted too often. just means that building trust and reputation even credit score is more important than ever.
thats why there are many that would prevents getting defaulted by borrowing from the other loaners to save their own reputation.

trust is indeed the major factor in play when it comes to lending business. usually, you can build trust by for example, loaning small amount of money at first, and as you build your credibility, you can increase your loan. just like traditional loans. the difference is, in crypto community, you don't need to submit your personal details. you are only banking on the trust of your online profile.
but when it comes to traditional lending business, definitely, they need to know the personal profile of the person as they are lending money and they need assurance that such person can respect with their terms. just look at the perspective - are you willing to give your money to just random person? absolutely not, right?

Yes, that's the need to take a loan from a bank; you should submit proof of documents; otherwise, how will they identify you? It's a common logic. Even if you take a loan in crypto currency, you have to give a crypto asset as collateral for the loan. And then platform attaches the collateral, then only gives the loan. Even if we submit all these proofs to the bank, bad debt still concerns the banks. The amount that cannot be recovered from the debtors is called bad debt. Loans from loan apps are more dangerous than expected; even though it's a breach of privacy, people are willing to take loans because of easy access. And at the end of the loan, the employees of the apps are starting to threaten the borrowers; it's another debatable story. So the thing is, if you take a loan from anywhere, you should provide proof of documents according to their policy, no matter what.

The principles used by money lenders on this forum are the same that money lenders have used since long ago, you either need to have some assets which can cover the loan in the case you default, you have a high enough remunerative activity which can eventually allow you to pay the loan, or you have garnered so much trust with that person they give you the loan without the need of the previous two conditions, with the latter option reserved only to those which have shown over and over again that they are worthy of that trust.

Yes, you need to be known. Here in this forum, you can take loans without collaterals but you have to be known or have a decent reputation at least. The requirements depend on who you are dealing with. The higher and stricter the requirements the lesser the interest. Lendings and other apps may provide easier access but their interests are high. The lowest loan interest providers are the banks, but you need their presence at their office or you need to have a stable account with them so you can avail of their loan.

So yes it is necessary to be known to take a loan obviously. It's plain and simple, put yourself in a situation as the owner of a lending company or a bank, are you giving loans to those that aren't known? Unless they have legit and verifiable collateral to cover the loans.

Well, I have seen a place on this forum where peeps are getting loans without knowing them practically. What I mean is they are getting loans based on their reputation on the forum and how active they are. This gives a clear idea to the lender that they are working with someone who is established as a trusted member and reduces the chances of scamming them.

However, it's still a surprising fact because they are just unknown person at the end of the day. No identity, no face, no place, nothing, and yet they are getting paid huge loans.

I think there is just no comparison between local banks and crypto lenders on the forum. However, there is also another type of lender that works on the blockchain with their own projects. They take the security of collateral and also their %interest is heavy for faster recovery of the principal amount. However it's worth noting that everything runs KYC free or without exposing who you are.

I agree with you on this. The principle of loaning is not based on trust but of the capacity to pay back. Someone you trust might change or you the trust thing as guarantee to ask for a huge loan and not pay back. Here in the forum if you have the capacity (I meant having a collateral that you can give to the person granting the loan) or you are participating in any signature campaign that your weekly expectation is sure and it can cover for the loan in the loan time period giving to you then you are of higher eligibility to be giving the loan. If you were able to pay back on time after the loan is granted that is when you might be trusted and see more opportunities of other users to be able to give loan you when you request again.

Although the trust and capacity/collateral  works well together. The only time it may seems difficult in trust is when it's a first time in applying for a loan.

I find that not too difficult to understand. Banks always have thousands, hundreds of thousands of loan applications every day and the amount amounts to billions of dollars. They need to ensure everything so they can keep risks as low as possible. If they have 1 or 100 borrowers who don't pay, there's no problem for them, but if 1 million borrowers don't pay, their business will certainly collapse. And if they don't make a series of demands and anyone can easily borrow money without paying it back, are they idiots?

Even if you borrow a small amount of money on the forum, you still need to have a reputation to get a loan. So we shouldn't be upset when banks ask for more things because as I said, their loan amount as well as the number of borrowers reaches billions of dollars and millions of borrowers.

Im not that confident on taking up some loan into these apps because on the time that i had tested it out on which on the time that you are installing their app then those permissions that you are giving them

ex. allow to access contacts
     allow to access media and photos
     allow to access location

Then this is something that i dont really like on getting known.Yes,it would be that normal that they will really be needing these measures to know about more on the borrower
but i will say that it is really just that too much. If you do value your privacy or information then it is really that out of your options. This is why taking some bank
loan is preferable if possible. I do able to get 0.45-0.8% max per month interest and much lesser if you are requesting for personal loans but if you are going for
car loan or housing loan then rates would really be different which it just fine than on getting those loans which does have horrendous % interest per month which you will really be
making yourself get trap in the future.
     

So far i havent been able to experience such thing but usually this is the thing i do heard off specially when you do miss out on paying or later due time which it is really just that normal that they would really be giving reminders with your obligations on which it is really that something that they would really be calling you but i wasnt expecting that there would be some harassments or insults that getting involved into this one.The thing i do like when it comes into these loan apps is that they do only have that 4-5% monthly interest which is really that high comparing to bank loans and some financing locally but if you are really that badly needed of cash or loan then this would really be your best shot on dealing up with these things. You would really be that agreeing into their terms.

Honestly, we wont really be experiencing those bad things or approach if we are really just that responsible with our dues. Come to think that we've come to them on taking up some loan and they had granted it out.
So it is really just that normal that you should really be repaying those amounts in due time or else then expect that non stop calls would be there but it isnt really just that right that
they would really be that too harsh on such approach because its not really the pleasant way on handling your clients.

Talking about loan apps. The worst mistake one can make is to take a loan from the loan app because failure to pay when agreed would lead to unnecessary calls, insults, accusations, and threats.

I have never heard of one who takes a loan from a loan app that talks good about it. It is usually a bad experience they face after they have collected loans and when they are to pay when due.

I wonder why people would go for a loan app instead of the traditional banking system that doesn't require control access to your contacts, text messages, and phone apps. What you need to provide is collateral that is equal to what you are demanding from them.

Why will a normal person apply for a loan with the intention of not paying back, I call that act stealing. Knowing more about the person is never enough if am lending someone money that person must drop at least one of his valuable property as collateral  or else I don't see any reason of giving my money out.

This is true, people are dishonest and they could even lie with their own identification, that is the problem. Look at the default rate of the debts in the banks, it's closer to 8% in my nation and lesser in most other nations. That means for every 100 people that get a loan, 8 of them do not pay it back, and that is a terrible rate.

This is with identity as well, so you know who you gave the loan to and they still reject to pay it. That should be clear enough reason why we do not really want to give money to people without knowing who they are first. In my nation because of the high default rates, banks started to stop giving loans all together, not fully to be fair but not for like small stuff, if you are a known and rich person then you may get it.

In a perfect earth, I’m quite sure the bank or anyone would still want to know the name and address of the person that the loan is going out to. They would still need to actually know you to give you a loan. For record purposes at least.
As even honest people can still experience difficulties in paying back their loans despite wanting to do so, the bank wouldn’t still rely on honesty as qualification for a loan.
The ability to pay back the loan outranks how honest the individual is in both worlds.

That's why I've said in my reply that "If" which means that I'm implying a possibility not reality but we don't live in that kind of world where there's no such thing as pure honesty. Regarding the consequences though, I don't think that the lenders that will default here in the forum is going to be suffering that huge of a consequence because this is online and you can't really dox someone. I don't know about being rewarded though when you pay your debts here, I guess the good thing aren't as physically attractive compared to consequences.

Before taking a lot of loans from banks and other companies a loan must take a KYC, which comes with the Credit investigation of the company if the person has a bad credit background or not to proceed with the loan, next is they approve now they can discuss the amount of it, and release the loan, those are the common things happen in financing company, but its different here in the forum we have a lending board right here before consider your loan they need to verify your account first if active, merits, capable to pay and etc.,

Some user manage to loan here huge amount due to their trust score and known to have the capacity to pay that amount of money. I agree that forum loan is just a micro loan of we compared to bank business loan but even a micro loan on bank requires you same requirements so it means bank standard protocol is to ask about customers details regardless of the amount involved.

It’s not easy to loan in the forum if you are not trusted here while you can loan on the bank even if you are untrusted to your community with just submitting valid ID and source of income. I think this is the big difference on loaning based to trust alone. Even banks experienced borrowers that is not paying the loan tho.

If you want to emulate them then you have to be prepared for all the risks that could happen.
But of course, Ds and Shasan have their own research, utilizing the reputation of each participant and whether or not they are worth the loan amount.

But when some borrowers can't pay because they die, it's a different matter.
It depends on the agreement between the lender and the borrower, If the beneficiary information is provided from the beginning, they have the right to pay.

If there is no agreement and there are some loan arrears then there is no need to pay for it, but the account will be given a reputation that the borrower died and the account will no longer be able to be used for any campaign.

You can see the discussion about deceased borrowers in this thread: https://bitcointalksearch.org/topic/what-happen-if-bitcointalk-member-pass-away-5418251

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Borrowing money from the bank is done when you need a large amount of funds for your business, while the forum is only a small part of it.
The loan amount also depends on the reputation of the account.

If you have bad intentions for the loan then the account will be given a negative trust and it is not worth the loan of only a few hundred dollars with the potential for the account to earn up to thousands of dollars.
Only a fool would do that.

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Lending because of generosity only exists in soap operas.
Especially in this forum, everything must have a guarantee and a price, those who are honest will be rewarded but those who are dishonest and have bad intentions will suffer the consequences.
No stranger will be given a loan by the benefactor.