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

[WillyAp]

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.

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.

[0t3p0t]

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.

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.

[Hewlet]

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?

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.

[WillyAp]

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.

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.

[Smartvirus]

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.

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.

[carlfebz2]

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.

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.

[philipma1957]

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?

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

[Sanugarid]

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?

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.

[TimeTeller]

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.

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?

[oktana]

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.

[Litzki1990]

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.

[AicecreaME]

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.

[JariKriting]

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.

[angrybirdy]

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.

[harapan]

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.

[|MINER|]

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.