Basically farming trust at all costs as far as I can see. It's a bit like paying for trust... The thing is, it's not really profitable haha 
Yeah and you can farm trust using collateral anyways and its more safe that way
I think probably the majority of loans taken out are done just to build rep or feedback. Why do people really need to borrow tiny little amounts of btc otherwise? The only thing I can think of is gambling but thats a quick way to lose all your money as most people don't win in the long run.