Topic: Is the need to be known a requirement to qualify for a loan(s)? - page 5. (Read 824 times)

i don't think these banks would give you a loan just because you are famous. let's face the reality that these banks are in business, so they need to check the financial facts behind closed curtains. they may give you priority being famous but it relies on how financially stable you are by proof of your docs. they won't just hand your loan on a silver platter.

Actually mate some banks do in fact most banks gives out loan because of reputation and fame. But now it's depends on what you famous for. We all know that not all famous people are rich we have to establish this fact so if you just famous them and not know for your wealth then you won't get it. But there are Rich names that doesn't need introduction that would get a loan form the bank any day

I'm sure all banks set the same conditions for potential money borrowers "their reputation and name must be clean" from bad credit or other things, because there are many cases where a borrower cannot pay their loan for various reasons and usually the bank will immediately blacklist them (that person's name), I have not made loans to the bank 1 or 2 times, I have made several loans to the bank and I have completed all my loans on time and well, so the bank knows my name well, they even said that if  If you need money in the future, don't hesitate to apply for another loan.

It's a centralized organization so they'll be centralized.
The bank as an organization is there to make a profit. You don't expect them to give out loans to everybody who comes to get a loan. There are things the bank uses to determine if you can get a loan from them and I don't think being famous is one of them.
A bank that gives out loans to only famous people is not serious.
We've seen cases where famous people go broke.
Banks give loans to people they believe would be able to pay back that loan and even at that, they still ask for collateral to the loan.

Your income, what the loan is for, how you intend to pay back, the time, and your collateral are the few things that the bank looks out for when giving out a loan.


You don't expect to be in a centralized exchange and expect to be decentralized. The centralized exchange needs to have KYC to know  the people trading on their exchange. It's also for the benefit of other traders.
If you want to be completely anonymous, then trade on a completely decentralized exchange.

In some financing companies, this is essential to assess and measure one's ability to meet their upcoming debt obligations. Qualifications of this nature are often associated with centralized enterprises, as data holds paramount significance. No company wants to extend substantial loans to individuals with a higher likelihood of being unable to meet their repayment obligations, particularly when they lack the financial means, right?

Similar to this forum, someone can borrow money with specific collateral or without it if the individual possesses a commendable reputation within the forum. No other parameters are employed to gauge a client's trustworthiness apart from their reputation. Individuals with high reputations have a greater likelihood of fulfilling their debt obligations, instilling greater confidence in lenders to extend loans once again.

I May have made it complicated by saying only KYC. But if you know your customer/the person who is taking the loan it just matter of some research to find out who he really is and what he does. I'm not disagreeing with your explanation rather I am proposing a scenario which could play out this way. Imagine a guy forge all the documents and makes you believe that he actually is the guy who owns that source where he collects his income. And the papers are so accurate that you can't tell the difference. And in the end after getting the money he runs away. You only have his face but not his identity. How are you going to find that person. KYC is needed only when the matter gets worse.

Actually we need all of it. Proof of income, proof of ownership, proof of identity, ability to pay back the loan, and if they feel what should be the collateral. Everything that is required is there for a reason. And when the required time comes this information will play a vital role.

I don't know what country you live in, but from where I came from Bank will gives loan based on credit score. Everyone starts with Zero Credit loan, at this state people can get a small loan range from $300 up to $1000, depends on their saving. Their behavior of paying back that loan will determine their credit score. If they pay their loan on time, they will gain credit score, and the bigger the credit score the higher loan they can get.

I don't know if there is any privilege for famous person, but as far as know, Bank doesn't give credit just because people are famous, Bank will check the credit score and people's saving.

Hi, Cryptomultiplier. First of all, I hope that your concerns are not due to a personal emergency.

The cultural and social issue associated with each of our regions surely determines this diversity of common and/orinformal ways of obtaining loans.

But the formal loan, from what is understood, does not vary much in the banking entities, some documents more and others less, now you have a confusion in your idea of the context, because opening an account has nothing to do with requesting a loan.

On the other hand, a bank recognizes a credit capacity,  in my case at least, in two basic ways:
Caso 1: determined by a program, that simply with the information initially provided, monthly income, average balance and perhaps having TDC, and/or previous or current loans, a candidate client status for a loan; yes/no.

And that is where, for example, they offer you a TDC, they call you, or they simply increase your credit for your TDC, or they offer you a credit. The bank knows that you can pay and offers it to you.

Then there is case 2, which includes the previous one, in the first instance you are not a candidate for a loan so you must demonstrate that you can apply for a loan, since this system does not have your data updated, maybe, better job, increase in your heritage, etc.

Hence case 1, you want the credit but you request more money than the banking institution is offering you, then you will deliver the documents that prove this credit improvement.

Depending on the country, applying for a loan is not difficult, the issue is how much the amount they will lend you can be.

BTW, there are countries establish a right of credit for the purchase of a home, mandatory for banks to grant it, there the requirements are minimal, but the loan is generally for modest houses, that is, find out the policies of the bank in your region and What advantages under the law of your country benefit you.

Never use informal loans (Fiat), they are loan shark.

Just for example that we do have that lending section here on this forum which the beauty of it is that you wont really be needing to have a verified account or KYC before you could be able to get some loans as long you do have that valid collateral and if ever its a non collateral loan then requirements and qualifications isnt something that easy which it would really be understandable since it is really just that easy to default a loan but of course lendors of this forum arent that dumb enough on not to screen well into those people who are tending to take or ask some loan. For centralized platforms like exchangers then it would really be normal or really that in default in speaking about verification or KYC or into those digital banks offering loans which location is really that a must need to be submitted or be known. Well, it is really that their terms and conditions on which if ever you do make out some request for some loan then it would really be giving you no choice but to deal on their terms since you are really that in need of money.

Can this be applied with those typical lending firms or platforms that we do have as of this moment? I dont think so but with those current loan providers that we do have available online
on which it is really that already that been integrated on which they do need to see your location first before on having that kind of loan request.

I would guess that in this case the problem would be just income and proof, not the ID itself. If there is a guy who comes up and I trust 100% that they can pay it back because I know what they are doing, then yeah I would give the loan, but how could I be 100% trusting of them *paying it back without any proof?

That's the real question and I do not think that's possible right now in this world, we need something else. Like lets say someone official transfers the deed of their house to me, it's done it's mine, officially mine, not just like give me the keys, and I have proof of paper that I own their house now, then I could give like 50% of the value back as a loan, if they pay the loan back with interest, I will give the house back, do I need their name really?

Just the papers would show it but lets assume I do not look at it, do I need it? I don't but who would do that. So, the technicality is that you need their name only because papers show it, but what you really need is the proof.

As far as I know, if you open an account at a bank and have been a customer for some time, you can borrow money from that bank. But you must follow the applicable requirements, including preparing collateral if you fail to pay.

I don't know what the loan application process is because it may require supplementary documents so they can check your account first. But it seems like there are easier loan applications that don't require too complete requirements. But you need to check the authenticity of the application because now there are many loan applications that only trap their customers.

And it is normal that there are requirements that customers must fulfill. Banks or borrowers don't want to just give up their money without knowing the borrower's background and what the collateral is.

Imagine a person coming to you asking for some money whom you don't know, nothing about. Would you be willing to give him that money? What if the person runs away with your money and never come back? It's a risky trade-off for doing KYC but you are only thinking for yourself. Put yourself in the position of those who are lending out this money. And then you can understand the situation. If the amount is huge no one will be willing to give money without knowing the person who they are giving to.

In this forum you can get loan without risking your privacy and it does not require any KYC but in order to qualify for the loan you need to have at least some kind of reputation in this forum. A newbie account can't apply for a loan if they are not well known. I won't lend anyone money whom I don't know. For me, it is required and I think it is important.

It's true that I'm the same as you, I've never had experience in online loans like that, not that I never wanted to but the strange thing is that when I applied for several loans it was always rejected, I don't know what was the problem and it happened not just once but every time I applied for a loan until I finally gave up. Now online loans are increasingly circulating on several social media platforms that we have, for the requirements themselves, it is clear that there must be certain requirements that must be met, whether it is difficult or not but they definitely tell us to do the requirements in accordance with their SOP, none other than that just for collateral, especially online-based loans they will definitely be strict in protecting every customer who borrows. Because there have been many cases that have occurred where the borrower ran away when he got the money, of course I think the requirements that must be met are reasonable, all for the safety and comfort of both parties as well.

Yes, that's right, especially if you want to borrow at the bank then there will definitely be more complicated requirements that you must fulfill, as you said a pay slip, nothing but the bank just wants to know how much you earn in order to adjust the amount of loan they give, because of course if you have a low income then the bank will also not give a loan that is too large. Of course, none other than that just to balance so that you can pay it with the appropriate amount of tenor. Some loans will make it easier for you, whether it's at a bank or an online loan as long as you can be fully responsible then they will make everything easier.

Every institution or individual that will provide loans must have its own standards where they apply rules to minimize the occurrence of fraudulent acts. Because this is a matter of funds, it means there is always a guarantee of approval. In this forum there is also a system like that and according to it each lender sets its own rules according to its needs.

Moreover, if the loan system is like an automatic bank, we cannot be careless in applying for a loan. Institutions have official regulations protected by shrimp law and must be transparent about their guarantees, as well as where you live. Because the money they hold is not the result of a snap of a finger. In a bank, the circulation of money must be clear, no matter how small the value needs to be recorded.

I may have misunderstood your question, but regarding loans: in the banking sector there is such a concept as credit rating. It applies to both individuals and legal entities. This rating is formed on the basis of many indicators / data, and it is a tool for financial institution to make a decision on granting a loan and conditions.
Most Western financial institutions work on this principle.
And here fame is not an indicator of high trust for the system, as well as publicity. In this case, if we are talking about a physical borrower, then will be taken into account - the history of loans, deposits, gender, age, health insurance, and many other indicators. But there will be no publicity there either. This indicator does not affect your ability to pay. But the movement of funds in your accounts does. And there is no direct correlation between these indicators

It is hard for me to understand where you live and what laws govern your banking system, but I assume that the banking sector also uses similar approaches.

I reckon it depends, but probably a lot more lenient on cryptocurrency lenders, especially on lenders here in the forum. Why? Because they're not a business. At least not one that stands to profit for as long as they can in lending, more like they're lending cause they're able to lend, and might as well since it's just sitting money. I reckon there are still some requirements in terms of asking for a loan, but as I said, more lenient, but not completely gone.

It's not really good to trust anyone, especially in this case where you don't know their identity, so their asking for some sense of "guarantee" is more than enough. Plus, it also helps that people know whether someone is in a campaign here or not, they at least know whether someone is able to pay or not in a specific amount of time. Plus, they also limit the max limit anyway afaik.

Yeah, there aren't many platforms that allow social type borrowing, myself don't remember the name of platform I was eligible on, other was Rocifi [1], but borrows are disabled right now, here social platforms are only one of metrics [2].

I feel with rise of decentralized social platforms like Lens protocol, Farcaster — we'll see social status based borrowing frequently in defi.

---

[1] https://roci.fi/app/

[2] https://blog.roci.fi/rocifis-defi-credit-scoring-terminology

I have no experience regarding loans online or from loan applications which are currently increasingly appearing in advertisements on social media or other platforms.
But I understand why certain requirements are needed to make someone eligible for a loan. Although currently many loans can even be obtained without collateral. But everything still has to be done by displaying an official photo ID that is still valid. And activating GPS is also intended to enable the lender to confirm the borrower's position. And I think that's a reasonable step for lenders to put in place.

Even to ask for a loan from the bank, more complete requirements are required. Even pay slips and the like are sometimes needed to ensure whether the person who is going to borrow will be able to pay the installments or not. But there are types of loans at banks that also do not require collateral. Namely in the form of capital loans to customers who need capital to develop their business. And the only requirement required is proof of ownership of the business that will be developed by the borrower. so checking the borrower's direct location is necessary. which is usually done by the bank officer.

Exactly my first thought. It shouldn't be a question to begin with.

This is quite funny and I didn't know they offer something like this. I bet they don't allow you to borrow if you're using an anonymous account or would do so for a small amount as in the case of the $2.

What if you're looking for a housing or car loan? You cannot expect forum members to finance that.

If you are asking about an offline/ bank loan, yes, you have to provide something before getting a loan, and on this forum, you don't need to provide identity to acquire a loan; the lender may or may not ask for collateral (depending on the circumstances/history).
Banks require some identification as well as collateral such as property documents or car papers before releasing a loan because if, by chance, you default on your loan, they can sell that collateral to balance their loss.
If I am the lender and have to give someone a loan of whatever amount, it is common sense that I will ask for an identity verification and collateral.