Well, if you really wanna do it, I advise to just look for someone who can get you the money and make that bitcoin you have as a collateral or go look for a bank that could offer you loans without involving your bitcoin, because you're just gonna pay it anyway in fiat, right?
The answer choice is wise because selling BTC is the same as selling the most valuable asset for a while. If you want to try a little more, there will definitely be someone willing to help where the potential for payment is there.
As for collateral, of course it is very strong because it can be withdrawn at any time and anywhere, only if the borrower believes in it. If it is true that it is a friend or close relative, I am sure it will be lent without any collateral, as long as there is a history and profile of the borrower.