Is the need to be known a requirement to qualify for a loan(s)?

[panganib999]

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.

[Egii Nna]

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.

[dothebeats]

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?

[Hispo]

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.

 

[Silberman]

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 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.

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.

[jrrsparkles]

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.

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.

[knowngunman]

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.

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.

[Doan9269]

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?

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.

[gunhell16]

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?

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.

[Tuturtinular]

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?

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

[bettercrypto]

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.

[Gozie51]

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.

[wajik-tempe]

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.

[Fara Chan]

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.

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.

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.

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.

[Don Pedro Dinero]

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.

[libert19]

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.

[jasonjm]

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.

[Yogee]

I believe it is a matter of common sense, to be honest.

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

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.

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.

[...]
Why bother seeking a loan from the bank or other lending apps if you're already on the forum, dude?

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

[Ahli38]

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.

[libert19]

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.

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.

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