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

[Nerdy doctor]

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

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.

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[beerlover]

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.

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.

[Miles2006]

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.

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.

[JoyMarsha]

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?

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.

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.

[Hamphser]

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?

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.

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.

[stomachgrowls]

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?

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.

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.
     

[Minecache]

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.

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.

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?

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.

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.

[Agbamoni]

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.

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.

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.

[so98nn]

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.

[inthelongrun]

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.

[Silberman]

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.

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.

[Biznesmen]

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?

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.

[AmoreJaz]

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.

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.

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?

[poodle63]

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.

[btc78]

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.

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

[reagansimms]

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.

[Kasabus]

-snip-
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.

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.

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.

[Antotena]

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?

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.

[someone703]

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.

[ndutndut]

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.

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.