If someone believes the LTC/BTC exchange rate will increase then they would take that loan.
No, what im saying is that if you already have the amount of money you need in altcoins what would be the point of asking for a loan
It's very simple...they are asking for a loan despite the fact that they already have funds available.
They just don't want to risk their own money but hope to turn the loan money into a profit.
That makes no sense because they are giving a collateral thats worth 120% of the loan wich is THEIR money so they are actually risking more money.