Quote from: Leonard2016 on September 01, 2016, 04:01:28 AM

Quote from: Positid on August 31, 2016, 12:57:14 PM

Quote from: aubert on August 31, 2016, 11:51:15 AM

Quote from: Vikingr on August 30, 2016, 10:41:43 PM

The best way is to give loans to those people to whom you personally know as if you give loans to those people who you do not know or those people will live far away from you then at default it will be hard for you to get that amount from them.

well that's incase if the one who requesting loan doesn't provide any collateral,if the one who request loan could provide a collateral atleast worth 130% or even more,it'll be fine if it comes to defaulted loan,just sell the collateral,but still selling a collateral isn't that easy as i speak
just dont take a risk if you're not ready

130% is not even enough, you should ask a collateral bigger than that so he will be force to pay his loan. It is not that we are interested of the collateral but we just want to ensure that the borrower will think of his debt to us. We are in the business of money so liquidity is our first concern.

why isn't it enought?!!
if the person doesn't pay his loan you can easily sell the collateral only if you have received a valid one which can be easily sold.
for example you can take LTC as collateral and sell it super easy to get your money back and even 110% is enough in this case.

It's enough but one important this before you're giving loans to someone, and if you know about bank there is always giving loan is more lower than the value of their collateral because if anytime their loaners are not come back in their wallet and you can always recharge your loss money in loan with a new funds with more profit but I think that's way is like cheating. just telling about bank system