Bitcoin Forum

To the Lenders,

What's your process for loan approval? What information are you requesting from Lenders and how are you reviewing and approving that information?

If you need help reviewing loan applications, i'd be happy to help, and we can work out a payment system that's appropriate for both of us.

Let me know and lend like sharks today!

Pretty much every lender is going to want to know what collateral is going to be offered that will guarantee repayment of the loan plus interest.

I have been watching the lending section for several months and have not seen a single loan request that would be prudent to make.

Sadly the lending section seems to be made up of scammers, trolls and people who are wanting to boost their post count for their paid signature campaign.

IMHO, if you're a lender, then you should at least know how to accept loans and everything. And unless you're QS or marcotheminer or MZ, the amounts of loan requests aren't overwhelming and are very manageable.

I get very few loan requests, but they are very easy to tell that they are scams.

I prefer to do my own due diligence though, especially when giving out 12+BTC loans as I want to make sure the collateral is going to be sufficient in case the borrower defaults.

As a lender, I can give loans based on their reputation! But I have to say estimating an account's reputation is not easy and for most of the times I will request sufficient amount of legit collateral!

So for collateral, how do you guarantee you'll get that collateral if the borrower defaults? Unless you're loaning to someone who lives near you it must be very difficult to take possession of something while the loan is outstanding or force the borrower to give you the collateral when/if the borrower defaults.

Any tips on this?

Thanks for all the comments, folks.

you would want to have an escrow service secure the collateral prior to giving the borrower any money. in the case of physical collateral, the process can take some time as shipping is a factor, but if digital collateral is taken, for example altcoins, the loan can be given as soon as the escrow confirms that the altcoins are in their possession. in the case the borrower was to default, the coins would be released to you, at which point you can liquidate them to make back the money you gave the borrower.

I keep seeing the term "collateral" and I'm think what is used as "collateral" online? Is someone giving the title to their car over ? I"m just trying to get an understanding of what is used if the person defaults on the loan?

stable altcoins that trade with sufficient volume on exchanges.

I rarely lend bitcoin.

1) I never lend to neg-trusted members.
2) I accept only bitcointalk accounts as collateral, as they very easy to liquidate here.
3) I lend up to 70-80% of the account value, to prevent get scammed by account farmers.
4) Get a signed message. This is very important! I have been in a bad situation recently for not requesting a signed message.
No signed message = no loan

I have given loaned small amounts to a couple forum members before... and i follow similar rules to tsoPANos... Although i would accept altcoins, almost nobody that needs a small loan actually has any ALTs as collateral anyways... Maybe this is different for bigger loans, but i only loan 0.01 to 0.1 at a time