Bitcoin Forum

I have come to realize that our traditional local banks only really give out loans to persons, or organizations that are known either online or offline and has a location with documents to proof their existence.
Same goes for those who use loan apps. You have to at least identify with the verifications stressing on passport, state of residence, age, and the funny thing is that your device location will be required to be turned on while doing all this or even applying for the loan.

I have no doubt my observation is applicable to even crypto currency lenders, because even these days the P2p system isn't as decentralized or anonymous as before where we think we were trading with bots or fake people/scammers.

Is there any truth to the fact that an individual needs to be known in any place before they can qualify to receive loans?
That is, is the need to be known or identified really required to qualify for a loan?

What are thoughts?

You can get a loan on this forum and the lender does not need to know your identity. You will see services like that on the lending board on this forum. If you have collateral like altcoins, or if you are in a signature campaign, you get a loan on this forum.

But if the loan is through bank or those loaning apps, they will demand for your identity and if you default any loan, you will be reported in a way that other loaning sites and bank will know.

I'm just general and not much different, as long as I know when it comes to borrowing, especially when we apply for loans at traditional banks or other financial institutions. The terms and conditions apply, first and second, a strict identification process is applied, starting from verifying credit whether you have applied for it or not, then checking a person's financial capability in terms of repaying the loan in the future by the bank.

And if I'm not mistaken, loans with a high enough rating allow you to get BTC quickly via credit card. But, it's best not to. There is a downside, prices may not reflect this reality for long because everything is volatile.

Am just learning about this and thanks for the candidness.
I still think that a person who can get this kind of loan here would have got to attain a certain rank in order to be granted such loan.
Unless it doesn't really matter, what's to say that it's any different to what happens in the real world.

Perhaps am thinking too much, but would like a third party be involved such like in P2p where there's an escrow account? What about the interest, is it going to be any better?

Because I have had some experience from loan app companies I will share with you. Literally anyone can get a loan within 30 minutes from a loan app. You do not need to be known or even to need to be employed. Those details are unnecessary what these loan app need from you is your KYC, your bank account information, and you would be required to connect your bank account to the loan app such that if you default on payment, the loan app will automatically deduct the money from your bank account if you have any money in it.

In my country you will be required to take a picture of yourself, grant the app permission to access your contacts, text messages and other apps on your phone, you'll have to submit national ID with tracking number on it. These qualify you for a loan.

There's a rank requirement of course and sometimes they ask for a collateral. But it depends on the lender if what is the minimum rank to apply for a loan. A few requirements are being applied as we do not know each other here and an identification is not being required. These requirements are being apply to secure that the borrower will pay the debt. Even for you if someone ask you to borrow money with someone you do not know, you can't simply lend money and trust someone especially a newbie rank to have a loan.

It’s not about the need to be known but rather your capability to repay the loan that’s why most of the bank choose known people that can repay the loan since they need to guarantee safety of their capital.

You can loan anytime even you are just still new if you can prove a strong source of income or assets that can be use as collateral. Banks just need to secure that loan will be paid through financial capabilities of their client.

My question to you OP is that if a random person comes to you seeking for loan and has no collateral just plainly wants you to give him a loan and he tell you when he would repay you, would you give this person the loan? I highly doubt if you would.

Lending money to people is a risky business and to mitigate your risks you have to go the extra mile in knowing more about this person you want to give your loan to, so I don't see any issue with that. Before you go applying for loan you have to give some information about yourself and still you have to be of good records, if you don't like that then avoid taking loans.

Well from my understanding from this, it's not only aiming for our thinking that once we did not pay the loan, they could just easily send someone to the address. Knowing your personal information is one their assurance that you could pay them cause they know your identity. They would also process if your monthly salary could pay up your loan, and they would interview you like how much money do you spend to provide your needs so they could calculate. And if it happens that you just by passed and did not pay literally the debt, they could just simply contact the place of your job so they could less your debt to your salary which is legal.

In a crypto context? You may have heard of defi lendigs, one of which is a platform that allows you to borrow without giving away your identity.
In essence, it depends on who the borrower you are referring to is. In conventional banks, if you have a good lobby with the officers you may be allowed to borrow using someone else's identity. lol

To be fair the reason why they get all those is to know what to do if you do not pay back. If there was somehow some hidden anon person you are %100 sure that would pay you back, the nyou could give them a loan too, whats the point of asking anything you are %100 certain that the person will pay you back. However, since we are not %100 sure, the reason to get identification is that if you do not end up paying the loan backı, they could sue you and take you to court. For example I take out a loan from a bank, and I give all my information to them, I end up not paying it back, since they who I am and where I live, then come to my house with cops and lawyers and take my stuff, that's always how its handled. This is why the idea of identification is not to see if you are worth it, that's what financial statements are for, not your house address, not even your name, they just need your financial information even if the name was hidden, for you to be able to get a loan or not, the other personal information parts are there to make sure they can come after you if you reject or can't pay the loan back.

If you are known, people easily can identify with what you do and have an idea of what you earn. If people know what you earn or have an idea based on your profession, they can become more willing to help you out with loans knowing that you have the capacity to pay back the loan. This is my thought on why unknown people who barely can provide any form of identification are rarely eligible for loans from individuals or companies like loan apps. If you are not known too, it can be easy for you to disappear with loans and never repay.

To be known implies the possibility the lender analyzes your reputation accurately, so you don't need to offer further guarantees in order to borrow money. However, it's not a must in every deals, because anyone can borrow money from a bank without having to be known. But then, they have to offer another guarantees: collaterals or guarantors who will sign the papers within the borrower, compromising themselves to pay the debt in case the borrower fails.

It's really common when signing papers to have access to a financing at educational institutions, buying properties and starting a business. The lender will never get annoyed by the fact you aren't a known person. His only concern is about solid guarantees the money is going to be paid back somehow without setbacks.

The only criterion required to get a loan is proof of paying it back because they can't simply give money to everyone without knowing how they will pay it back that is why you can get a loan if you give your salary proof or income tax returns for the recent past years which serves the purpose of identifying how much they can lend to you and what your worth really is.

I don't feel it odd or anything because that is the structure of the traditional financing system now talking about decentralized loans you don't need to identify yourself but you need to provide valid collateral for the amount for example the lending section in bitcointalk where your reputation will be served as collateral but you can get maximum of few hundreds for that, if you need huge amount it won't work.

For bank loan applications then of course it would really be just that normal that they would really be giving out priority into those people who are known and does have that valid collateral or whoever had passed up with their qualifications and this is why it is really that hard to make yourself that be able to pass up and would be approved whenever you do really ask for a loan. You would really be needing to provide on whatever they've been asking and of course it would really be just that normal that collateral should be there or whatever that assurance that you could really have on having a loan.
As for online loans then i have experienced for needing up such location but i dont think that it would really be that something to be precise considering that locations could really be altered out on making
use of data connection on which you could really still be able to skip out if you do really intend not to show up your own place on the said transaction.

As for P2P then it would really be not that possible yet you are really that still touching up the platform on which in regarding to be able to make use of that p2p then you should really be having that verified
account and the rest then dealing up with real user or bot on the platform in regarding p2p transactions is unlikely.

That is almost like a rhetorical question or enquiry you are going into. It is as simple as will I loan money to someone that I don't know. Meaning will I loan money to someone that I can't get the money back from despite his or her verbal promises and of course that is why guarantor comes in and the place of a guarantor in a loan contract is important.

So whether offline or online, a first timer in a loan contract is well scrutinized than the person who has been getting the loan and repaying as at when agreed. In other words, the first time stand a lesser chance to get a loan than he who defaults to repay but he who repays at when due would always get loan and even more if he request.

You can get a loan while staying anonymous at least here but you must meet the conditions and those are means to ensure the money is recovered.

So to loan is a business and whoever is in the business works to sustain it and profit, so they won't give out loan to who won't pay back including interest. Banks ensure they get a collateral above the value of the loan you are going for.

That has always been the case, in the past banks used to be local banks and not the multinational corporations that we see today, and they will not lend you any money if you were from a region which was outside of their influence, so a bank at New York will not lend money to someone from Texas and the reverse was also true, so it is not that surprising that banks want to know as much as they can from you before they give you a loan, as otherwise they may lend their money to someone that may never pay them back.

You are right, because this forum operates in a decentralized way. Why I said so is that nobody cares to know about your identity and they will also advice you to stay anonymous and that is why you must be in a signature campaign for the lender to be rest assured that you will be able to pay back. Apart from this forum, I don't think that there is anywhere that you will seek a loan from that wouldn't need your identity and your information. Whether be it online banking apps or our local banks or even money lenders. If they don't know your identity or have your information, it is like they are dealing with a ghost and how will you ask a ghost to repay his loan when you don't know how to reach him. In my country, you go in person to get the loan and if it is an online app, you must use your BVN in your application.

You may not like banks but trust me, if you are them when it comes to lending money to people, you will need to use 3 eyes to see well and make decisions that will favor you to be able to continue the business. You see, human beings are very wicked and they change at slightest opportunity. If documentations are not done properly and they lend money to them, more than 75% of them will not come back to pay back their debt, so don't blame the banks for going overboard to loan known individuals and people they can easily track down.

How do you want a loan to be given to a strange person that you cannot track when he dafualt a payment? What are you going to do if they don't really have a means to pay back? These are the problems you should ask. Even in a decentralized lending platforms that document and information are not collected, a collateral deposit is required before you can borrow money from any of their protocols. If you wish to have a successful business in lending, make sure you know who you are lending but if they provide collateral, I may depends on safe the collateral relative to amount needed.

There are so many loan apps in this era, and most of them, when it comes to charging, are very intense. If you are delayed for one day, a person who borrows from lending apps will immediately experience intense harassment.Apart from the very high interest they charge, the amount you owe is not full because they immediately reduce the percentage that has already been given to you.

It's even better to borrow here on the forum than from lending apps; as long as you know how to communicate properly, it's fine. As a matter of fact, the people who will give you a loan here will quickly trust you as long as you meet their criteria.

I don't think it's "fame or being renowned" that's affecting your chances to get a loan approved. in my opinion it boils down to the fact that these people are credible enough that the bank could trust them with the loan, they know that these people are well-known enough that they can basically earn a living through their fame, and if in any case they don't pay up they can just easily find where they are or who to talk to to get to them. Now, you don't need to be as famous as these people to get your loans approved. You just need to be trustworthy. For one, that could be achieved through the credit card route, have a credit card, pay it well and on time, and the bank would trust you enough to actually lend you the money that you owe. Having a good credit standing also helps, so there's that.

Actually, them asking for your information is best because if they don't have it, all you'll think is that they don't know what they're doing and don't want their money paid back because with your information, that is what they will use to track you if you don't pay them, and with your information, that is what they will see to know if you will have the capability and capacity to repay them back their money. For instance, if a jobless man asks you for money, you won't give it to him because you know he won't be able to pay it back. However, if a salary worker or someone with a source of income asks you for money, you will give it to him without hesitation because you are confident in his ability to repay. This is merely an illustration of the setting in which you are familiar with them. Then consider a bank and other anonymous internet loan applications.

If you disagree to them asking for your personal information, are you just being ungrateful and self-centered, or do you also want to borrow money and not pay it back? If so, I fail to understand why you would object to providing your details to obtain a loan.

Although I understand where you're coming from, I don't really think it's usual for any lenders to identify who they're lending their money to and verify those identities. I mean just think of it, will you let someone you don't know, a complete stranger, borrow money from you giving you little to no guarantee that they will pay you back? Also, if you really think about it, even with the people we know we have second thoughts on whether we'll lend them money or not due to the risk it gives, what else for a complete stranger?

I believe it is a matter of common sense, to be honest.
Even if one is not asking for a loan, it is common for apps and other financial services on the internet to ask for all kind of identity certifications and proof of residency.

You are supposed to put yourself in the shoes of the lender, OP. Would you be willing to lend me money if I did not give you some of my personal data or without considering my previous history here in the forum? There is a good reason no one around here in Bitcointalk would concede a loan to a newbie, because knowing your borrower is the 101 of loan risk analysis. Something any lender is supposed to give a look at before accepting or rejecting a loan application.

  :P

As much as banks are not liked on this forum people need to learn to put themselves on their place, a bank is a business and like any business they need to make sure they can make profits with each operation they do, and if this means an intense investigation of the person that is asking for a credit then so be it, after all it is not like the potential debtor can refuse, as if they are asking for a loan that is because they cannot find anyone else to give them that money and they need to accept whatever conditions the bank gives them.

Not only that, you need a good credit score and the interest rates will also depend on your credit score too.

If Elon asks for a loan of billions of dollars then banks are happy to give him but they can't treat someone who is salaried and making 30-40K per year because they are never able to pay it back in their entire lifetime.

Never take loans unless you are rich and have the same amount in your liquid assets so you can pay the debt when something goes south.

This is why I don't want to support Forum loan. It's painful to see someone loosing their hard earned money to scammers who default loan. Banks are very right to demand for collateral that worth up to your loan amount so incase you default the loan, the property will be seize and use to recover their money. In the case of online mobile loans, some of them have a way to tape your phone that you can not be able to use your phone if the deadline exceed and you refused to pay. Here in the forum, you only get negative tag for defaulting the loan and you continue to live your life, create a new account and start over if you want to while the lender remain empty and feel remorse for lending you the money. I have been thinking of a way to recover loan in this forum but I'm yet to reach any conclusion.

Two things must be put into consideration when taking a loan, you must be either have a qualateral to stand for you or a surety who us a reputable and trusted personality to stand for you, f these two conditions are not satisfied, you're likely not to be given a loan for any reason because you cannot be trusted with a reliable means for pay back, another one i think looks more common is for the government workers, they obtain loan base on their level of income as salary grade and they make deductions every month from their monthly payments.

Why bother seeking a loan from the bank or other lending apps if you're already on the forum, dude? They will give you a very high interest rate on the ones you specified, allowing you to sink even more. If you do not give at the appropriate moment, you will be in trouble.

If you qualify among the lenders on the forum and match the lender's criteria, you will not be required to provide KYC or any documentation to prove your identity; instead, you will remain anonymous online. That's what was seen; I'm stunning. Just don't damage the lender's belief in you here; they will, of course, trust you. But if you loan for a big amount they will require you for a collateral.

Of course I don't think anyone would want to give a loan to someone they don't know, whose address they don't know, etc. In my opinion, the condition of anonymity is not necessary for lending purposes. The only people who lend money without KYC are on this forum. But I think this happens because this forum has its own reputation standards, and not paying debts is a bad consequence for our own account

Not always anonymous is better and giving loans to anonymous people certainly increases the risk of higher default

If a lending business, bank, or loan app asks for documents, I think that's normal because they are under the regulation of the government. That's why the ones I mentioned have such high interest rates that they can apply to what you borrow from them.

Because of the money issue, they are quite strict in terms of the requirements they look for in the borrower, and when you give them that, they might even have a civil investigation to confirm if the information you gave them is true. They are that strict and restricted.

Like you said it goes beyond document. Banks or microfinance banks usually go for check to verify the collateral that have been given to them so that to be sure to get the value of the money they are giving you from the property incase you default. And in most cases that physical verification is the last stage before to they release the loan. So there is always a relationship of trying to loan the identity of someone you want to give loan out to. You don't throw money in the air and expect it to come back to you at the exact spot, you have to guide your money if you are giving a loan.

The search for loans in the interesting world of modern finance might feel like a magnificent journey through a multi-dimensional labyrinth. Traditional banks are like old fortresses guarding their treasures, requiring you to carry the flags of identification and location with the utmost authenticity in order to enter their sacred chambers. Meanwhile, it's a little like being a lone explorer in the digital wilderness of cryptocurrencies - you have your pseudonymous map, and you traverse the decentralized landscape using the compass of encryption.

Any lending company is actually quite smart about it because they all think about it before the loans they give to everyone. So the correct documents will definitely be requested by the lender and if someone who takes out a loan objects to this, it is better not to apply for a loan because the conditions are already like that.

Money problems are quite serious problems and also very sacred because human nature can change for the worse when someone cannot repay the loan on time. So lenders certainly really need real borrower data so that they can control it more perfectly so that they are not easily deceived by borrowers.

In any European country, and I imagine in the rest of the industrialised countries, your bank requires a lot of data to open an account following KYC/AML rules. This is only for depositing money or receiving your salary there. To get a loan, they need to know more about you, in particular your income and expenditure history, credit history, and what financial assets and liabilities you have. So, in general, it is not enough to be known. If it's a bank, they have to know your financial history in detail.

Payday lenders ask for less than that, but they do ask for KYC in order to get repaid.

For crypto loans you have the lending section where you don't have to be known if you have collateral to offer. If you don't, you do have to be someone with a certain rank and reputation (at least neutral, not negative) and I would add that you have to participate in signature campaigns, which indicates that you will be able to repay.

Yeah it is. I am quite cautious of taking loans irl  but I do use pay later services on ecom sites. I came to know later that It's also a type of loan and ecom sites know my address and required KYC before I could use for the service.

I tried taking loan in defi as well, it asked me to connect my Twitter, and resulted to I ain't famous enough, thus didnt qualify. On one, I did qualify and I was eligible for hilariously 2 dollars of loan. It was more than expected tbh.

O0

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.

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.

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.

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 (https://blog.roci.fi/rocifis-defi-credit-scoring-terminology-67109d2114ab)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

Many celebrities are not in a good financial situation. I don't think banks will give loans just because you're famous. Banks ask for many details and it can be difficult to fulfill these details. Celebrities may have high incomes, but their income may not be sustainable. At the same time, celebrities' expenses can be very high.

The situation we are talking about may differ depending on the work done by celebrities. No matter who they are, in the country I live in, banks do not have a preferential attitude towards celebrities.

Providing that requirement shows that the banks have the idea where the borrower is located so that helps to the approval. But that's not the mere basis for them to approve someone's loan request.

It's still more of the source of income. Banks will definitely see if you're approvable or not depending on the source and stability of your income. The location where you are located is just like the 2nd priority and it doesn't matter to them if you're popular in that area or not. But it is more likely that you'll get an approval if you have high and variety source of income that you can document.

Regarding with Shahan as loaner looks OP has qualify to get chance loan trough in the lending board, he actives on signature campaign and easily get approving loan but have difference loan interest between loan in lending board and taking offline loan as trough Bank. Not easily approving loan with Bank if haven't expensive certificate and higher values than with how much loan want to approving.

I think you right with your ideas better for OP applying loan in lending board but seems he only receiving not really big amount due his account level still Full Member.

This qualify rule for applying loan in Shahan lending board.

In the traditional market, that's important. How can a lender just give money to anybody without knowing him/her first? Identity is very basic. That's for security. If you are bringing a collateral, say, a house certificate of ownership or a land title, you should prove that the name appearing on those documents is your name. So, you will have to provide valid IDs and other proofs.

In the crypto market, that's isn't necessary anymore. It's most likely enough that you provide a collateral of higher value than the amount you wish to borrow. Even in non-collateral loans here, it is sometimes enough that you've established your name and that you're trustworthy.

There are many platforms where money can be borrowed and given anonymously with cryptocurrency collateral or NTF collateral and it is possible to do this within the forum. All these platforms I mentioned generally don't request user information but do require a collateral for the money to be borrowed. Of course, in the absence of personal information and proof of income it is necessary to provide collateral to obtain a loan.

Nowadays, many financial institutions and banks require both personal information and a guarantee in return for the debt before lending money. This is very important to provide assurance that the borrower will be able to repay the loan. However, when we examine the platforms where we can borrow using cryptocurrencies, we can see that usually only a collateral is requested for the amount to be borrowed and no personal information is requested. This is necessary so that both the intermediaries and the lender can guarantee themselves that they can safely borrow money completely anonymously and prove that the debt can be repaid.

When we examine the platforms (including the forum) where loans can be taken against cryptocurrencies and NFT collateral, we can see that full anonymity is ensured and no identification or similar document is required. Other than that, platforms that request both collateral and personal information are no different from typical financial institutions as they are absolutely contrary to the mission of blockchain technology.

My thought is not single, and infact it is conflicting but I will try my best to explain. I had known the traditional loan method which the bank uses for so long and I have always thought that before you could get a loan, you must be known by the institution offering the loan and again you must have a tangible collateral to present which in my country is mostly landed properties.

But when I arrived this forum, although it took many years to discover the lending board. On getting to know the lending board, I was surprised to understand that people give non collateral loan to pals they do not know in person. Little did I know that the bitcointalk account itself is a collateral. Now I have understood that even $20k cannot make me destroy my account.
So, answering OP, if there is a collateral, knowing someone in-person is no longer necessary.

Also, lendors of this forum cant really just grant out any loan request even if it doesnt have that collateral. You would really be Indepth checked whether you are really that approved on getting a loan or not
which it would be usually be having this kind of consideration;

1. Must have an active campaign
2. Doesnt have red trust
3. Merit count
4. Forum Rank
5. Activeness in the forum
6. Vouch from someone(which is unlikely)

If you dont have those qualities or criterias then even if there lendors of this forum but still you cant really be able to get such approval or
being that eligible on getting one. Actually it is really that  great that we do have something like this on the forum which the amount that being released
is already that significant or with those loan amount which you cant easily get on banks or getting approved but you could actually get on this forum
but it would be situational yet there are loans that would really be that more bigger if the collateral been offered is greater than on the loan amount which its standard.
(Most likely, collaterals are also crypto coins too).

About KYC or location then this would really be standard on bank loans but here on this forum then it wont really be necessary
but of course getting approved would really be that tough and not something that could really be that so easy.

Don't ask other people that question and think it's funny or unnecessary. Put yourself in that position, are you willing to lend money to strangers when you don't have any information about them? Can you do it, or will you hold all of his personal information, including his relatives? Just put yourself in that situation and you will understand why banks and lending institutions have to do those things before lending you money. Furthermore, when the number of borrowers reaches millions and the loan amount reaches millions of USD, you have to be even more careful.

He doesn't look like a noob and he also mentioned crypto/P2P lenders there but he thinks they are now getting centralized. For me, I think there are still a few left who are fully decentralized. They are only following the nature of BTC or the cryptos. Obviously, we don't need to fulfill a KYC upon using their service but they will only require a collateral. This is still a problem for the most people who will borrow money because even a good collateral is not present on them.

What's a good lobby? Is it some kind of a connection or communication as a result of being friendly to them and you have given them a tip (money) each time you enter the bank? It may work but it's risk for both parties. I don't think I can take it.

Yeah, a common "evil" practice of borrowers in my locality is that you have to have very good connections to bank insiders. Then you just have to look for potential borrowers who will then become your "referrals". With some manipulative explanations you can say that, your referral loan proposal will only be approved if the loan amount is accumulated with yours."

With insider cooperation, this proposal will be easier to pass. Of course you still have a bill for your share but it is not a written responsibility, because you borrowed in someone else's name.

It's a must, if you can't give valid collateral where they can easily sell it if you can't pay back the loan, what can the lender hold except your credentials? They need to know you since they want to see if you're a human and the real owner, that's why the verification is really strict. They also want to know your track record, have you ask a loan in the other site or is there any loan you haven't pay yet etc.

When finance is involved, there is need for due diligence to be in place, as a loan institution only manages the resources of a third party, which you not only have to give account of but also will have to multiply. Putting all of this into consideration, you must understand that it is not possible to hand over a third party's finance into the hands of one with a questionable identity or reputation, whether it be online or offline. You must be known and vouched for as one with sufficient capacity to deliver or return the funds loaned or have a collateral with which the funds can be raised in the event of things not going as planned.

When you don't have collateral you have to be known to some extend to be eligible for a non collateral loan. On the forum as well, loans aren't just given to anybody (non collateral loans), you have to be known on the forum or your account been valuable that you won't want to risk losing your account for loan and even when you meet all criteria, not all loan amount can be given to you. Been in a campaign also increase the possibilities of your loan been approved because the lender knows you can repay with your signature payouts since most of us don't know ourselves physically. Without money, your connection can help you when you want to apply for a loan. Also on the forum, if a valuable (well known) account stand as a guarantor for you, your loan can be approved .


Outside the forum there has to be a collateral that'll be used to repay the lender Incase you forfeit the loan. Basically you need to be known if you don't have the collateral to qualify for a loan both in and outside the industry but if you have the collateral you don't need to be known. Loans are given to people that doesn't technically need the loan as a poor man that needs the loans will be instantly rejected but the rich man with the millions in the bank will get a loan whenever he wants and that's why the rich keeps getting richer because they have access to funds that can be used to improve their businesses while the poor masses keeps on suffering.

Do people even struggle any longer to make sure that they got themselves into taking loan as before again, loan has been one of the ways that people get enslaved under our creditors and I've seen alot of cases of loan taken whereby they debtors are unable to make a payback of the loan given, why should we go by and take a loan, trouble will be there sitting and we will be finding it through invitation.

It is true that to qualify for a loan, the debtor must be known or identified to the lender. This ensures the lender can assess the debtor and decide whether to approve the loan. Without correctly identifying the debtor, it would be difficult for the lender to evaluate the risk of lending money to them. In some cases, lenders might consider providing loans without identifying the debtor if they have collateral such as bitcoin or altcoins.

Regular people hate to go through those procedures, because in a way the bank is assessing their economic well being, and being told you do not deserve even a small loan can hurt your ego, but this has to be done, since we have seen already what happens when banks give huge loans to anyone that asks them and this will lead us to another economic crisis, and since I am sure no one wants another one of those then we will have to accept those procedures.

Getting a loan from this forum is safer than outside the forum. Why, because you will not be asked to bring any of your official documents, although it depends on the amount of loans you want to collect and your rank too.

No way for newbies or junior members to get a loan here unless they are a full member rank and above. It is still safe to get a loan from the bank. Why? Because I feel that the bank can save your documents with your informations and also make them private to them and not share it with others, but those loan apps that you said most of, are scams, like when I mean scams, I really do mean it. Your identity can be licked to other platforms without your consent and some of these apps do sell informations to other people.

However, verifying your identity when you want to collect a loan is not a bad thing, but when verifying it, we still have to be careful. Some of those places that do offers people a loan also ask for collateral.

If you want decentralize P2P lending there is actually a lot of them in DeFi marketplace like happen on BSC, ETH and pretty much all EVM chain including the famous one is AAVE.

But you need collateral before making loan but at least your personal ID is safe there is no such non collateral loan it always a collateral because our personal id is considered as a collateral in my opinion

Understandably, people don't enjoy going through the process of qualifying for a loan. Remembering that personal ego shouldn't come in the way when applying for a loan is essential. If you need a loan, it's important to set aside any self-consciousness and focus on providing the necessary information to the lender.

That's perfect, maybe when he first out himself to others shoes that he is also a lender, will he not require a loan qualateral or enough evidence to proof that he will not loose away his money he's lending out to people, if he had wanted to be a philanthropist, that is another entire different case, he can go as much as any length in being a father Christmas, that's also another way of giving back to the society if we think we have enough money in our disposal unused and other people are lacking, or maybe create a no interest loan which will also attract having strong qualateral as well.

There is no way the loaner can know the person that needed the loan in person. This is a faceless forum and one need to be very careful or else, they can end up giving loan to someone that will run with the money and not refund the money. For a person to be fit to get a loan, they must be in a campaign especially the one that is going to stay for a long time. This is one of the most important requirements for a person to get a loan although there might be other requirements too that will guarantee an account to be able to get loan.

Not taking sides, but this is pretty much self explanatory, I mean traditional banks will ask you a proof of existence so that they will know if you have the ability to pay or not. As for the loaning apps, it's the same, but what I don't like about this loaning apps, is that majority of them are really going after you if you missed one payment and they will go to the lengths of embarrassing you in social money specially in Facebook.


P2P it's very hard, you really need to be very careful. Although there are platforms like Binance who has P2P features, it doesn't mean that it is safe. You still have to do your due diligence to check the accounts that you are going to deal with.


For traditional banks and loaning apps? unfortunately yes. Even if you try to open a bank account, they will ask you a lot of documents and you will be forced to submit.

That's because they need a guarantee that the one asking for a loan has all the correct information and they know how and where to locate him in case he is defaulting, they even ask you for collaterals or proof of where you are working and for how long and do you own your own land, traditional banks are like this, there are lots of documentation involves and you need to provide guarantors or references with a good status in the community or business they are in.


There's a lot of risk in asking for loan apps they are illegal here in our country because they are not regulated so in case you default on a loan they will threaten you and contact all your contacts and mess up your life.
Taking a loan is not easy you have to prove that you can pay and you will not default and they always have a counter in case you default on a loan, they are not in the loan business just to lose money.

even in this forum, lenders like in "board lending" (https://bitcointalk.org/index.php?board=65.0) prefer borrowers who have a good reputation, especially in the real world, when i first borrowed money from the bank, there were many questions asked by the bank to me, even though they initially refused to give me a loan because i couldn't show them that my income was stable and could pay them on time, i'm sure this applies all over the world, reputation is the most important thing in this world, without it it will be very difficult for you to succeed trusted other people, especially the borrower, keep your name good.

And you do not need to have a big reputation either, as long as you apply for several loans on the same bank and you pay them on time this will create a reputation for you of someone that is worthy to lend them some money, so it should not be surprising that the next time you set foot on that bank not only you are given preferential treatment, but you could also obtain way more money as a loan and for this process to be completed very quickly compared to your previous requests.

Very true about the preferential treatment because only a person who has become a noted customer benefit in real sense.
The need to be known is very solid, but to be known for the good things such like fulfilment of credits on time, spending discipline will give one a better option anyday as compared to one who doesn't payback loans on time or have a good money spending habit.

These days though, loans can be gotten from anywhere even with the loaner not knowing anyrhing about the loanee, except for a picture that may be badly taken, residential documents that may be outdated or government issued documents that may need renewal or revalidation. Bitcoin members here I learnt can get loans here but it depends still on some requirements that points to ones actual claim of existence.

There are many such loans, which only require a photo ID and phone number.
But I'm sure the borrower will regret it in the end, because the interest and service fees are very high and they can even be regarded as loan sharks, blackmailing borrowers if they don't pay on time.
The high-interest rate will make the loan look like a lot because of the ongoing interest.

But for some loans provided on this forum, it is clear how the mechanism is with the interest that has been stated and agreed by the borrower.
Usually, many members of this forum who make loans to @DarkStar_

DarkStar's Loans | BTC, USDT (https://bitcointalk.org/index.php?topic=3243635.0)

As a financial institution, just knowing who you’re giving a loan to isn’t going to repay the loan. Obviously, there is some need to know just who is applying for the loan, that is just a step in the list of requirements needed before being qualified for a loan.
The ability to pay back and on time too is what most likely would be at the lenders mind when taking out a loan. The bank also doesn’t give loans if you don’t have the means to pay back despite being well known.

I often hear that it is an online loan service because they don't verify your employment details and monthly income, they only need photo documents, ID card and telephone number, they provide easy service but they set high interest rates, you are always being watched if you don't pay off the loan on time, they will blackmail and confiscate the things you have. I suggest stop making online loans and if necessary apply for a conventional loan with a lower interest rate and they follow friendly collection rules.

Loan services on forums are easier without the need for any documents and low interest rates, they will approve loans depending on the reputation of the account, if we are active participants in the signature campaign for weekly passive income then we can apply for higher loans.

If we do speak on this forums lending section then i would say that it wont really be that much strict considering that you could really be able to get non-collateral loans which is really that something that you could get in real life. Im an avid loaner with those people who do offer loans on lending section and without needing to expose or in need of some information then it is really that a great convenience on getting a loan and without having that collateral been asked and you've been approved which it is really that something very helpful in times of needs.

They would really be just simply needing those criterias that they had set before you would really be making that eligible for the loan.If you do zoom out, then it is really that a huge risks
for them which considering that lending up an amount into someone you cant really be that so sure that they would be able to repay then its a huge risks.
You cant really be able to get nothing from it.

I see almost nothing wrong with what those entities in charge of giving out such loan is doing, they are just trying every possible ways to reduce the rate at which their customers might run away with their money so they need every bit of a details that can help them catch any loan defaulter, and another thing they need to verify who they are given out loan to and consider the amount that the person can be able to repay back at the given period, I guess that’s why most of this information are being needed.

Some citizens are just out their to spoil others business, if they make that loan given of a thing very easy and don’t include such policies you will discover that anyone can just wake up any day pick up any smart phone and fill form to get a loan with out having the intention of paying back. Anyone who is not okay with any loan app rules and policy should avoid using their service that’s just the best thing to do.

They have to make it clear to know who they are after to. That's okay if the banks are too strict on whom they're granting the loan requests. Because if they are not strict and they just grant everyone's request, they may soon file for bankruptcy.

But I think that as long as you have provided all the requirements needed and you can proof that you're a paying customer, they will consider as well those that are not known in their communities.

Wherever you go, when the loaner doesn't see you capable of paying and don't know how to charge you, you'll just declined.

Not only that, customer data will be disseminated when customers cannot pay on time.
This is quite scary where data such as KTP is very private but instead, it is disseminated.

They also have an application installed on the loaner's device and just so you know the application can intercept some important data such as SMS, location, and others.
So never deal with unverified or illegal online loans.
Conventional loans are more humane and not like online loans.

Not only to be known to proof their existence but also to know their capability to pay the loan.  Information is also needed if one is to provide a collateral such as property to know whether they are the true owner of the property.


It is an SOP for the Centralized services, before anyone can access their service especially lending, they one who wanted to borrow money should be fully identified.


As I stated centralized services need to know the person who requested a loan.  That is needed for filing and the data is stored for future needs in case the company needs to provide details of their transaction to the authority.  Aside from that, they need to know the person so that they can file a case against them when the person failed to pay their loan.

There are many SOPs that must be followed when making a loan with conventional services such as BANK.
Even surveys are done very thoroughly because many people in my place make loans with a guarantee of land titles, vehicle titles, or other securities.

That will determine whether they qualify for a loan or not, and paycheck receipts are also needed to see if they can pay their monthly bills or not.

If they cannot pay they will apply for a warning first and if they cannot pay within the specified time until they are in arrears, then the vehicle or house they live in will be confiscated, it will be a good guarantee for the bank when they cannot make payments.
If they only make demands on the obligated party they will not benefit, the bank also thinks about the worst.

I’m surprised you’re just finding out that banks don’t just give out loans to just anyone interested in taking out a loan. If they did that constantly, there would have to refund customer deposits used In doing business as the bad debt that would ensure would be crippling to the bank.

I know most people would agree that for you to get a loan from the bank, you need to provide identification and some sort of reassurance that the loan would be repaid. “Trust me bro, I’m good for it” isn’t going to cut it.

       -  I can only add that the percentage that DS has is quite high for me; his approach is nice and friendly, to be honest. If only I had a big fund, I would imitate @DS's approach. Second, Shahan is also there, and his approach is also friendly.

The only thing that is important is that we should not let the trust that these two reputable people give to the forum be broken. There are many people who have helped @DS and @shasan in the forum community here, and it can be said that if they have regular borrowers, it can be said that they trusted borrowers because they also don't let their accounts be damaged here in the forum, even though we are all anonymous here.

More also for a new customer, he or she will be well scrutinized including going to visit on the collateral he has presented. A customer who has almost maintained the agreement of his creditor gets easy access to loan facilities and even the creditor is open to allow addictional loan even when they have not redeemed the first just because the trust has been built over time as the customer is known to fulfill payment as at when agreed. Everyone giving out loan wants to be sure to get the money back without mercy stories.

But there is a difference between borrowing money on a forum and borrowing money from a bank. You won't need to pledge or provide your identity to the lenders on the forum, but what's the maximum amount you can borrow? A few hundred dollars or a few tens of thousands of dollars? It's just a very small amount and not even significant if you need a large amount of money to do business. At that time, borrowing money from banks will become more complicated and require more collateral, but you can borrow large amounts of money for your business.

If every person on this planet is honest and has integrity, the need to be known wouldn't even be a qualification for loans because if everyone is honest then everyone is going to be paying their loans no matter what but we don't live in that kind of world where if you show a weakness, someone will definitely exploit it. I think that for loans, it's an understandable thing for them to do because they're lending money and they have to have some kind of guarantee that they can get back on their loan after all, no one gave a loan because they're charitable and they really want to help.

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://bitcointalk.org/index.php?topic=5418251.0

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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.

---

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.

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.

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.,

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.

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.

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.

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.

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.

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.

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.
     

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.

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.

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.

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.

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, 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.

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?

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.

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

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.

However, if the applicant is is need for a quick money, conventional loans cannot provide that but with online loans, its highly possible, but the only problem is you only get less net proceeds since their interest is high and very injustice. That is the reason why we should discourage the people not to go for online loans as they are like being taken advantage by these illegal online loans.

Now back to the question, I don't think being known is a requirement for loan qualification. As long as you can provide the necessary documents needed, and you have no negative records from other banks or lending institutions, then your loan will be approved, not maybe on the amount you desire but still you can still make a loan from them.

Depending on where you want to take a loan from but you should note that taking a loan require a collateral whether it's a centralized lending platform or in a decentralized lending platform. You need a collateral to be submitted before a given amount of loan can be approved to you.

In addition, you should also take note that if you submit a volatile assets as collateral like non stable crypto and take another assets, there is liquidation which means that as your depreciate when the price decrease, if you don't pay back your loan on time, there is a value in which your assets can be liquidate to cover a loss if you don't pay back your loan on time. One of the best place you can seek out for loan is compound finance but reminder, you need a a collateral.

Regarding KYC, I think it's your choice to do KYC if you think there is a need or not but personally, decentralized lending platforms don't request for KYC before your loan can be process. It's a protocol that doesn't need to depend on middle, you and the protocol is enough to get started for your loan.

Strictness isn't necessarily a bad thing, as long as it's fair and transparent. Banks need to be clear about their criteria – credit score, income, collateral, the whole shebang. It's not about knowing every Tom, Dick, and Harry in town; it's about establishing parameters that ensure responsible borrowing and minimize risk.

But here's the rub – sometimes, the "unknown" can be the most promising. Just because someone's not a local celebrity or a financial rockstar doesn't mean they're not a creditworthy borrower. Banks need to consider alternative forms of proof, like strong cash flow, solid business plans, or even a track record of responsible financial behavior outside the traditional banking system.

In fact, the intention of people who are in debt is of course to return the loan, but many of them fail to pay because they fail to achieve targets or other things, and in the end are forced to run away from paying off the debt.

That's why many people who are in debt end up getting more and more debt because they don't have a target for borrowing or in other words, they don't go into debt to be productive. It's like borrowing money from a bank, of course they need valuable assets as collateral. This is not because they don't trust the borrower's honesty, but they don't want things like not paying on time. Until now, I rarely get into debt or give into debt because both are not profitable for me, I would rather save little by little.

It's obvious that organisations only give money to people with something in return.
You need to have a business plan to have a shot, one that includes a marketing plan and all things you possess in order to make it happen.
In developed countries you can get credit easier, banks are smarter in the 1st world.

Yeah those loaning apps I think is under the regulation of the central banks in a specific country that is why KYC is important to them. I personally want to try them but I am having second thoughts as well. There are actually a lot of these apps flooding online through ads here in my country but I haven't tried one yet. Even on the lending board haven't tried it as well. I am afraid if I will miss a payment or unable to pay on time. And the sad reality about bank loans is that they need collaterals and has a lot of requirements.

before you decide to give out any loan to an individual, it's necessary you at least try to know who you are dealing with. The thing is that people are always afraid when you threaten to post their pictures in the public domain if they fail to pay there loan and that's the reason why most loan vendors would want to get your location and face verification before accepting to give you loan.

If you don't do those things, people will create multiple account and will get your loan and zoom off with it without any trace and that's why they take it as a necessity before even considering you for any loan. Most liab apps now require that you use your face ID to log into your account whenever you log out and if the face doesn't correspond with the initial face you used for the account registration, you can't even be granted access to the loan app in the first place.

Then you have no trust in your own habilities. Once you have mastered the trust in yourself you create a business plan, a marketing plan and approach with that confidence a round of investors. That will be the moment of success. But that is only the 1st step.

I don’t blame any organization in taking steps to ensure the recovery of there funds. We’ve got way too many loan defaulters that has create a chain of lose in the system that organizations as much as they hope to reduce the regors involved in acquiring a loan, they still need to sort means to ensure loans could be paid as at when due. It’s cool.

Although personally, I feel loan acquisition has been made too common and comes with almost zero difficulty these days. Just anyone could acquire loan with just a cell phone number with the loan offerers depending on the connections or verifications that might have been previously done with the chip number for recovery of loan. I mean, that’s way too simple.

Of course its business and its just right that they would really be doing all sorts of things and ways that could possibly give out that kind of back up plans whenever they had granted up some loan on which we know that that primary risks on a lending business is that to those people who wont really be tending up to pay up on the said amount on which it would really be just that right that they would really be requiring at least in speaking about device location which would back it up on the documents that you have sent out. We know that even approving yourself on a bank loan wouldnt really be that easy on which basing up on requirement that they are asking then it would really be that a challenging one but if you are complete then it would really be just that easy.

As for online loans specially on apps then requirements would be just the same, it turns out that turning device location would be just that part of the process. Actually
there is really that so much risks to those lendors who do lend out money because there would be no assurance that you would really be getting paid back
by those borrowers knowing that not all would really be willing to do so.

No it is not a requirement.  But if I do not know whom you are I would want collateral.

Let's say you are an old school btc holder.  and you live in a place that does not allow for BTC.

You want a $4000 loan. You send me 0.1 BTC I send you 4k via PayPal

all I know is your PayPal phone number nothing else.

you use the cash pay me back in 10 months time. say 4400 . I get my 10% interest you get your collateral back.

I only know a phone number and your forum name you only know my forum name and the address I used to hold the btc

I believe they need your identity to be loaned to others, but you must be well-known in that area before you can get a loan. I don't think I've ever seen anything like that. You don't need to be famous in the area to get a loan, there are many other apps out there that can easily get a loan, all you need is your identity like ID etc.

If you borrowed from the person himself, maybe this is the case, because he needs certainty if you can pay him back. But with apps and others, you don't need to be known to get a loan.

That's their business, so it is understandable that they don't want to lose their funds to nothing.
So for me, taking precautions is just right because if not, they will be the one who will be screwed and their business can't move forward.
Taking a loan requires certain requirements from the borrower, and they should understand such requirement.
If not, how can a lender assure that their borrower can indeed return their money?

You need to be known or need to have a collateral because if you do not pay back and you were just anonymous, how does the person who lended you the money handle the case? This is the reason why the banks you speak of ask you for so much details including where you live, next of kin, etc. they need to make sure that they have enough information to track you, and you can’t blame them because they have had experiences adding to the fact that you can’t trust humans. Even for crypto, you may be able to stay anonymous but something must be at stake as you cannot just have the money like that.

To take a loan from a bank, you have to take a loan in a specific category. If you are a government employee then your loan amount will be slightly higher or if you are a farmer then your loan amount will be different. Banks usually want to give loans to customers who have jobs and good monthly income. The bank does not want to give a loan to a customer without a job, because when the bank wants to take back the loan from that customer, he cannot repay the bank loan on time because he does not have enough money. In the case of taking a bank loan, in addition to employment, some documents are required to be given, which banks provide loans to customers by keeping deposits.

Taking a loan from any local banks needs a lot of legal documents, especially you need to have a job that is qualify for their loan. Banks won't give you anything unless they can verify that your job and your other background information can pay the interest of the loan you're going to take, if not, they will simply reject your loan application for them.

Because it doesn't make any sense on how they will give you the loan if you can't pay its interest, you're just going to be broke or might end up losing some of your properties just to settle down the loan.

If you borrow from a bank, you don't need to know the bank official you're borrowing from in order for the loan to be disbursed.
But you need to have collateral. The item you pledge to borrow the money. e.g. a car, land, house with a certificate in your name.
If it's an online loan, all you need is your ID and a selfie with your ID, and a bank account to receive the money you borrowed.

Exactly! Every banks has a same and different requirements and it depends on how much you want to loan. Like what  you've said, bank will takes collateral in order for you to have a loan, they prefer car and properties, But if you want to have a quick loan without any requirements and collateral, you have to consider the cash advance option if you have a credit card, that's what I do when I needed cash.

How are the loans going to be recovered if there's no proof of that person's existence?
The details and documents they ask for are to identify the person, then the other documents are to identify that the person is the actual owner of the collateral. The collateral has to be an asset that can be easily liquidated.
The banks are there for profit, so what's the point of giving out a loan if they can't make a profit like it or not loans are how the banks make a profit.
A bank that's not leading money one way or the other is not making a profit.
Even when governments are giving out grants they still need to know the people they give the grants to to keep proper records.

You don't need to be known or popular before being given a loan.
Just present assets that can be used as collateral, collateral that is liquidable, and be able to prove that the assets are yours.

It is natural that any institution will know everything about you before giving you a loan.  Because the amount of risk of the lender is high. However, if you want to take a loan in the forum, your personal information will not be asked.  Loans are given in the forum in two ways one is collateral and non collateral.  In collateral you have to put some pledge like altcoin. And in non collateral you have to join in signature, you have to have good reputation in the forum.