Very true indeed as no one would ever trust such user with collateral due to the red tags and the newbie account rank of the user. Well, I agree that the user can offer no collateral loans and many members may take advantage of those loans but newbies often make mistakes when they offer no collateral loan services because there are many scammers in lending boards who always try to trap the lenders and those newbie lenders often be prey of the scammers. I have seen a newbie who gave non-collateral loan to another newbie but the other party left the forum and took away the money. I have also seen a reputed member who gave loan to a newbie and he/she also didn't got the money back.
Yes, it is absolutely true. These incidents actually occurred here in the forum. I also remember that there was a famous member who gave a loan to a member with a good rank and reputation and did not recover the money. This happened because the member who borrowed the money had force majeure circumstances that prevented him from paying on time, but what is the benefit? This incident greatly damaged his reputation.
In conclusion, loans without collateral have many problems, and I am surprised that the OP is looking to provide lending services even though he has a red tag on his profile due to his accusation of “
Liar and collateral scammer.”
To avoid a furtherance of such situations lenders should stick to getting collateral for any money they are lending out not respecting the repute, rank or pitiful excuses the borrower might wanna craft out while asking for a loan. Every borrower usually talk and looks innocent when seeking for a loan it's afterwards their true character surfaces.
For an unfortunate situation where the borrower has to get into bad health later after taken the loan leading to his non return maybe due to how critical their health condition is and so couldn't return to forum to repay his loan, for what is worth it a collateral would cover for such circumstance and the lender won't be at loss.
That's why is ideal a collateral must be used as security in every loan business as we can't control events that may arise in the next minutes.