You know, I don't mind people like you jumping in to give a courteously unsolicited "warning", but when you fail to THINK before posting, it makes me cringe. WHAT DOU YOU THINK THE BORROWER WILL DO IF I DECIDE TO KEEP HIS COLLATERAL?
Collateral is usually worth more than the amount that is borrowed so it can easily be sold. If someone gave you 50ltc as collateral (~1.4btc) for a 1btc loan, you could run with their ltc because they're worth more. Because you're a new member and not yet known to be trustworthy, it would be wise to escrow any collateral.