[ACTIVE] Tomatocage's 2%-10% interest loans, up to 5 BTC (collateral required)

[Tomatocage]

I decided to create a new thread instead of having to go through and edit the old topic. Lending has been switched back ON, but things are a bit different this time. The point where your BTC needs meet my lending goals meet is going to be a little fatter, to the tune of 10% (up from 1% previously). However, collateral requirements have been reduced to 100% (down from 115%) for the loan. Here's the breakdown.

I have up to 5 BTC to loan at 10% or less*!!!

No questions asked, and brand new users welcomed, even if you just registered today.

Terms

• You must supply collateral before receiving a loan
• Collateral must be in the form of LTC, XPM, PPC, NMC
• The amount of collateral will be the same (converted to BTC at that time) as you're borrowing
• All loans are for a period of one week, unless agreed upon otherwise
• All collateral transfers must be from an address that YOU control

*Interest scales with amount of loan:
5 BTC 2%
4 BTC 4%
3 BTC 6%
2 BTC 8%
1 BTC 10%

Example Request
Amount requested: 1.5 BTC
Purpose: I don't care (No questions asked, etc)
Term: 1 week (negotiable)
Interest: 8%
Trusted?: I don't care. You're supplying collateral.

FAQ:
Q: Why would I give 100% collateral when I can just sell my coins and get the same BTC?
A: Well, for one thing there's the exchange fees you'd have to swallow, which can be pretty sizable at the loan limit of 5 BTC. And keep in mind that you'd have to pay these exchange fees twice -- once to sell your coins, and yet again to reacquire them, and don't forget to factor in the withdrawal fees as well. Second, you're protected against price surges. For example, if LTC (or whatever you use as collateral) suddenly doubles or triples in value while your loan is active, and then you need to buy them back (remember, you sold your LTC for BTC right?), you're going to end up with significantly less LTC than you had before. This way you're completely protected against price surges since you'll get back ALL of your LTC after you pay your loan off

[pandacoin]

Collateral + huge interest rate, huh? Good luck.

[Tomatocage]

A quick glance at the threads in this section shows quite a few borrowers willing to pay back 50-300%, so 10% isn't too unreasonable I think?

[deadley]

A quick glance at the threads in this section shows quite a few borrowers willing to pay back 50-300%, so 10% isn't too unreasonable I think?

dont you think 10% for 1 week is really high. you are not giving micro loan where 10% is nothing.

[Tomatocage]

dont you think 10% for 1 week is really high. you are not giving micro loan where 10% is nothing.

It's a hedge against price fluctuations. Previously I charged 1%, but required 115% collateral. But as I noted previously, there seems to be a large number of people willing to pay several hundred percent, so 10% should be nothing to them.

[austin]

A quick glance at the threads in this section shows quite a few borrowers willing to pay back 50-300%, so 10% isn't too unreasonable I think?

dont you think 10% for 1 week is really high. you are not giving micro loan where 10% is nothing.

An interest rate of 10% is pretty reasonable when you consider that the collateral is relatively volatile. If the collateral coin crashes for whatever reason, the borrower would have incentive to default on his loan. You won't get the same rate as a bank loan against your car because your car probably isn't going to lose a large portion of its value in a short period of time.

[GBattaglia]

I'm unsure how many people would take a loan out of 1 BTC minimum at these terms.
For a user to come out ahead considering these terms the loans would require collateral to shift by at least 10% in a week.
Since the only accepted collateral is the major alternatives right now, that is very unlikely to happen.

Don't know, there is a market for everything I reckon.  I just don't see the logic for lendees. 

[Tomatocage]

I'm unsure how many people would take a loan out of 1 BTC minimum at these terms.
For a user to come out ahead considering these terms the loans would require collateral to shift by at least 10% in a week.
Since the only accepted collateral is the major alternatives right now, that is very unlikely to happen.

Don't know, there is a market for everything I reckon.  I just don't see the logic for lendees. 

Who knows why they might need a loan? I don't, but I don't care, just as long as collateral is provided. And just scanning some recent threads, I have seen quite a few people willing to pay way more than 10%:

https://bitcointalk.org/index.php?topic=581492.0 <--65%
https://bitcointalk.org/index.php?topic=580826.0 <--12%+
https://bitcointalk.org/index.php?topic=565476.0 <--25%
https://bitcointalk.org/index.php?topic=577908.0 <--50%
https://bitcointalk.org/index.php?topic=575004.0 <--15%
https://bitcointalk.org/index.php?topic=575345.0 <--66%
https://bitcointalk.org/index.php?topic=571061.0 <--20%

[deadley]

I'm unsure how many people would take a loan out of 1 BTC minimum at these terms.
For a user to come out ahead considering these terms the loans would require collateral to shift by at least 10% in a week.
Since the only accepted collateral is the major alternatives right now, that is very unlikely to happen.

Don't know, there is a market for everything I reckon.  I just don't see the logic for lendees. 

Who knows why they might need a loan? I don't, but I don't care, just as long as collateral is provided. And just scanning some recent threads, I have seen quite a few people willing to pay way more than 10%:

https://bitcointalk.org/index.php?topic=581492.0 <--65%
https://bitcointalk.org/index.php?topic=580826.0 <--12%+
https://bitcointalk.org/index.php?topic=565476.0 <--25%
https://bitcointalk.org/index.php?topic=577908.0 <--50%
https://bitcointalk.org/index.php?topic=575004.0 <--15%
https://bitcointalk.org/index.php?topic=575345.0 <--66%
https://bitcointalk.org/index.php?topic=571061.0 <--20%

but mostly newbie who did not got loan and fan eagle was asking micro loan of 0.01, for that 25% wont hurt but for 1-5 BTC its really hurt. but I agree in 1 thing you are taking risk by only taking 100% collateral coz even lender take loan and dont want to payback you still wont get any profit.

[GBattaglia]

I'm unsure how many people would take a loan out of 1 BTC minimum at these terms.
For a user to come out ahead considering these terms the loans would require collateral to shift by at least 10% in a week.
Since the only accepted collateral is the major alternatives right now, that is very unlikely to happen.

Don't know, there is a market for everything I reckon.  I just don't see the logic for lendees. 

Who knows why they might need a loan? I don't, but I don't care, just as long as collateral is provided. And just scanning some recent threads, I have seen quite a few people willing to pay way more than 10%:

https://bitcointalk.org/index.php?topic=581492.0 <--65%
https://bitcointalk.org/index.php?topic=580826.0 <--12%+
https://bitcointalk.org/index.php?topic=565476.0 <--25%
https://bitcointalk.org/index.php?topic=577908.0 <--50%
https://bitcointalk.org/index.php?topic=575004.0 <--15%
https://bitcointalk.org/index.php?topic=575345.0 <--66%
https://bitcointalk.org/index.php?topic=571061.0 <--20%

A lot of these people didn't get loans filled, may not have been legitimate, and also were doing the loans free of collateral. 
Collateral is the big thing here.

[Vod]

A lot of these people didn't get loans filled, may not have been legitimate, and also were doing the loans free of collateral. 
Collateral is the big thing here.

I find that users seem to offer outrageous interest rates when they don't put up collateral.

They hope greed will overcome your common sense.

[GBattaglia]

A lot of these people didn't get loans filled, may not have been legitimate, and also were doing the loans free of collateral. 
Collateral is the big thing here.

I find that users seem to offer outrageous interest rates when they don't put up collateral.

They hope greed will overcome your common sense.

I believe that is the case, yes.  That is why I'm stating using loans which have not been confirmed as having
legitimately transacted, or loans that are collateral free as a means to show a fair rate for a loan with collateral
 is an inaccurate comparison.

[Tomatocage]

After some more thought, I changed up the OP to make the interest rate a sliding scale depending on the amount of loan, since at the upper end of the loan amount, a .5 BTC repayment would indeed be a bit much.

[ahmedjadoon]

The amount of collateral will be the same (converted to BTC at that time) as you're borrowing
If someone got that much worth of ALT then he can easily exchange to BTC. Why would someone borrow then?

[austin]

The amount of collateral will be the same (converted to BTC at that time) as you're borrowing
If someone got that much worth of ALT then he can easily exchange to BTC. Why would someone borrow then?

A common question is why don't I just sell my collateral? Well the reasoning behind collateral is that you think it's going to appreciate in price or do not want to sell it, encouraging you to pay back the loan to have your collateral returned.

[zolace]

Hi so anything underneath 1 bitcoin is 10 percent correct,  I can provide collateral i have ppc and litecoins and dogecoins let me know cage if I can get a loan for a two days

[Tomatocage]

Hi so anything underneath 1 bitcoin is 10 percent correct,  I can provide collateral i have ppc and litecoins and dogecoins let me know cage if I can get a loan for a two days

That's correct. I can take LTC or PPC as collateral, but not DOGE unfortunately. BTC-e spot rate for the conversion. Lemme know how much you need

[zolace]

Hi so anything underneath 1 bitcoin is 10 percent correct,  I can provide collateral i have ppc and litecoins and dogecoins let me know cage if I can get a loan for a two days

That's correct. I can take LTC or PPC as collateral, but not DOGE unfortunately. BTC-e spot rate for the conversion. Lemme know how much you need

I need only 0.03 just till 2 days or less ok, send me pm with ur address to send litecoins, u will give my litecoins back? once I send u the btc back?

[Tomatocage]

I need only 0.03 just till 2 days or less ok, send me pm with ur address to send litecoins, u will give my litecoins back? once I send u the btc back?

Please deposit 1.28 LTC to LKJt4gekcPu7FKGWx2KoFgBjTJx53EFChr

What is your BTC address?

Edit: Going afk for dinner.

[Tomatocage]

Guess you didn't need the loan after all.