Wait, what you are saying is that someone wants a loan of btc to buy ltc giving his already owned ltc because he believes ltc price will go up? Seems pretty stupid to me
Scenario:
You have 100 LTC and no other funds available
You know for sure that LTC price will go up within 1 week.
What do you do?
Wait for it to go up? You cant know it for sure so it would be really risky to get a loan. Lets say 100 ltc = 1 btc
So you will get a loan of 1 btc using your 100 ltc as collateral, you will need to pay at least like a 5% of interests so thats 1.05 btc back, the ltc price would have to go up by a lot to compensate all the trouble and the fees so not a really good idea