I never understood how would anyone use an altcoin for collateral, i mean if you want 1 btc loan but you have like 100 ltc, why not sell the ltc yourself instead of asking for the loan?
I've never really understood that either. Using money to get a loan of other money seems pointless. I think most people who take out loans here do so just for the feedback though so that's one reason. Using your account as collateral seems like a better option though sometimes people need the accounts to actually earn the money back.