Look at the Lending section on how much most lenders are asking as their profit for every loan they're giving to borrowers. Observe and compare on how many percentage they add on top of the loaned amount.

For those that you don't trust, it's a yes.

But if the person that you're giving loan is reputable in the community, you can give the loan without asking for collateral as the reputation of theirs is gonna be your guarantee.

If you don't like that then always ask for it.