Quote from: aloe4kanes on February 19, 2018, 08:36:12 PM

for sure it's no normal reason for loan if i must pay more than i want to recieve, rlly, it's can working only on platform like WM (u work with credit contract, and WM system is being a guarantee of a credit (if the debtor does not repay the debt, then the system pays the creditor funds, and with the debtor is dealt with by itself through legal actions, is it not so simpler? and do not need any collateral)
pls if any want to help a man who trying to be a more good person, pls help!

The point of collateral is to cover loses in the event of the borrower defaulting on the loan. It being 120% is so if the value shifts downward alittle, it will still be more than the loan, and on top of that you will have a lower chance of defaulting if you put up collateral. If the loan is match with the collateral, and the value of the collateral goes down, the lender will be at a lost if the borrower defaults. And I am sure no lender will risk giving a loan through some weird contract. If that is the case why not do that with a bank there?