Topic: Why do you take a loan on this forum? (Read 455 times)

How understandable can that be? I'm not even trying to sound all moral here but how does someone take out a loan just to fund a bankrupt addiction? I know we're of different cultures but I will understand it better if someone took out a loan to get married than doing so just to watch strangers have sex on their screen. It's weird, frankly.

I have never taken out loans here on the forum, and I commit my trust not to ask for a loan here, but for me, it was a big revelation to see such terrible interest rates that people are willing to pay to get a loan. For low-income people, paying such interest is an extreme measure of madness. Many poor people live pennies to pennies, saving their money, and on the contrary, they know how to save some little things for the future. But such squandering with interest payments seems like a very stupid action, and it’s not even worth saying that someone doesn’t have enough to live on. The only justification for me to take out a loan in crypto is precisely that banks cannot provide it to us. Everything else must be attributed to the expression: know how to live and spend within your means.

This comes to mind:

Good for you but unlike some other individuals they may not have anyone ready or reliable to give them a loan and this is not because they don't have family or friends but reasons that those channels are not reliable in coming through for them in an emergency times that demands urgent loan to solve a need. So such persons take the forum to be their first point of reliable reach since they know they are legible for loan by way of being in one signature campaign or offering any other services in the forum that proves they are capable of repaying.

I have a close associate who works in a private establishment and all the loanshe had ever taken has been only from the company he works and they have to be taking a percentage of his salary till the loan is covered. I spoke with him about requesting for family members assistance some other time he needs a loan particularly that of a small size loan, but he opened to the fact that the only time he asked for their financial assistance they couldn't assist therefore he doesn't bother himself on them anymore but just focus on loans from the establishment he works with.

And it's possible some people that takes loans from the forum could be with similar mindset about family and friends, so what they do is just to focus on forum when a loan need arises.

Some people might have already exhausted all the options mentioned, i.e. tapping into their own funds or asking family/friends. But for others, convenience is definitely a factor too. Some may have their funds locked in investment or fixed term deposits so they're not easily accessible. But even if you hold bitcoins in a non-custodial wallet, it could be cheaper to get a quick ~ $100-200 loan in USDT and pay the interest than it would be to transfer bitcoins to centralised exchange, pay ~$30-40 transaction fee + exchange and withdrawal fees.
And when asking friends/family, there's usually some element of embarrassment to it when you have to explain why you need money etc, plus you could be putting them in an uncomfortable spot if they don't have much available cash themselves. Whereas here, you could just ask without any explanation, pay it back and be done with it.

But I agree that it's sad that people don't feel comfortable in talking to their family first and would rather pay interest to a stranger on the internet to avoid awkwardness.

I don't know about the dissociation part but I can wholeheartedly agree that small amounts to lend can be a good reason to do it in the Lending section of this forum compared to banks and such plus the fact that banks need you lots of stuff to deal with like paperwork and in some cases, credit scores, that's not the best metric to allow someone to get a loan, that's why it's better than banks.

Especially as you do it in a dedicated place.. the lender is already offering it's services as it!  And the lender too is free from accepting your request or not... without any other embarrassement or maybe the risque of asking a known person could put him in a worse financial situation for helping you!
So you could prefer loan and repay interest instead of eventual  issues, embarrassments or so !


Also taking a regular loan from bank or lending institution is not everytime suitable for the cases of the loans made here.. not huge amounts, small durations ...  also many people prefer the dissociatin between their regular finances and their activity related to crypto.. So for some short and small actions making a regular bank loan would just not be suitable.

This is probably the best reason in my opinion why people are taking loan here in the forum, it's probably much easier to do it here too because you just need to have a reputable people to deal with and you're good to go unlike with a loan that you will have to face the lender, it gets hard at times because there's going to be negotiations that you yourself don't want to get yourself into. Plus there's also the benefit that the lenders won't probably care about how you will use your money as long as you return it with the interest.

A few things that come to my mind:
1) Less embarassing to ask on a public forum as a stranger than an acquaintance/ family member/ friend, especially when it comes to online vice activities
2) Reputation. If either side has borrowed multiple times especially repeated business, it gets much easier
3) Flexibility. If my paycheck/ payout is due in X days, I rather not dip my hands into my pocket first. Let the loan give me some sense of security.
4) For the scammers/ newbies, trying their luck on gullible victims

Disclaimer: I'm saying to general users, not for the user you refer to.

Yeah I also think like that, it's all about building trust, so they ask a loan in this forum. The genuine loan is either small loan (for gas fees) or big loan (for medical health etc that they don't have any way whom they need to ask).

One thing that easy to notice is the user ask the loan from many users, let's say we already have multiple financial deals and you gave me positive feedback. But in the next loan, I post my loan application to other lenders.

Isn't they already have money from the forum signatures in the first place?

If they're struggle for having access to the banking system, isn't owning cell phone and purchase internet package is harder? remember they're poor.

You can ask a loan from friends or families.

Here are my personal reasons why I prefer to borrow here instead of other options. One reason is that your application can be edited and cancelled anytime you want (although you can't cancel it once it's granted). You have direct contact with the lender compared to the lending company I use, where it's too much hassle to contact them, especially since you can only reach them through chat support. Another reason is that you don't need to provide your identity. So you don't have to worry about your privacy. There are many other reasons why I chose to apply for a loan here, but those are just some most common ones.

If people wanted the reason for their loan to be known, they would post the reason. Most of the reasons that have been given are correct though. A person can take a loan here and repay with sig campaign payments. To get a no collateral loan you have to have a history of quick repayment or high rep here, but most of the lenders know who is and who isn't a risk from previous loans. You're also not risking real estate for the loan, you're risking reputation which some consider more important.

And they also don't give loans for having a Bitcointalk account, with a certain seniority and prestige and participating in a signature campaing, which is one thing I forgot to say in my previous post.

Banks and family members don't take crypto as collateral.

I hope they live in Mogadishu and don't have access to the banking system, then, because taking a loan here and paying an interest rate of 10/15/20% per month, which translates (averaging) to 180% per year when you can take a fixed mortgage in the USA for 7% per year or less and in the EU for 5% per year or less is pretty dumb financially speaking.

I would say, Helena Yu, that in some cases it is people with few resources from poor countries who do not have access to the banking system and in others it is people who use the loans for things that the bank would not give them, such as trading or gambling. That is why they pay such high interest rates.

Because the forum is very good very nice !

Maybe because it's a crypto loan, so if there's something they want to do online like payments and instead of having to borrow cash and then first converting it to crypto. A crypto loan would be more direct. Other members get payments from the forum signatures, so I think they find it easier to get no collateral crypto loans and just pay within a month using the signature earnings.

I believe there are several reasons members borrow loans. Borrowing loans to trade and gamble is a little extreme IMO unless if the person knows what they are doing and has a contingency plan.

There is a user here that woudn't admit he  made a wrong judgment  ( https://bitcointalksearch.org/topic/m.62357567 )
There is a user here continue to tell lies about "being late" other users that repaid early tons of loans (https://bitcointalk.org/index.php?action=trust;u=2221175)
There is a user here who is incapable to live his life pacefully  because he continues to hold a grudge, when it would have been enough to admit that he was wrong instead of continuing to denigrate despite him being contradicted by the facts on a daily basis.

There's a user here (I'm sure you all know who I am talking about without me having to say their name) who has been "building trust" over many months with loans that started out as $100 - $200 at a time - they have a proven history of being late with their loan repayments and now they are lending anywhere from $1,000 to $2,000 at a time with overly abundantly generous loan repayments and far fetched stories of "get rich schemes" that is funding their lending habit.

And that's the thing.  It's a habit.

Drug users have a habit.  They start out with recreational amounts of illicit substances. Then, as their dependency on drugs overwhelms them, they get greedy and turn to theft or deception to fund their habit taking out "pay day loans" to fund their addiction.  On payday, they repay the loan for the previous week of drug taking, then have to take out another loan to pay for this week's fix.

Rinse and repeat.

But back to non collateral loans.  With a proven record of late repayments and what looks like a "drug habit addiction" lending, (or at best a gambling addiction) anyone lending to such a user has no right to complain when that user overdoses or misses a repayment (or simply goes dark) when they can't repay their obligations.

Forewarned is forearmed.

The two people that I know that take loan on this forum is not because of gambling or trading. It is used for house building purpose. They were both about to finish the house and think of collecting loan to finish it. I am talking about different people and different buildings but both are my friends.