Post
Topic
Board Lending
Re: Medium Loan Request - 10-15% Interest, 30-45 days, Collateral and Escrow
by
Eisenhower34
on 08/11/2014, 14:58:11 UTC
I don't think this loan poses a very good risk to the lender if you will not allow the lender (through the escrow) to liquidate the collateral in the event the value of the collateral falls below a certain point.

You are essentially applying for a margin loan which is a loan when you use a stock or a bond as collateral so you can purchase more stocks/bonds. With a margin loan the lender (usually your stock broker) will be able to sell the stocks/bonds in your account to cover your loan in any situation, not just when the price falls below a certain point. Although most brokerages will have a policy to attempt to contact you to get additional collateral in the event they wish to sell your collateral, they are not required to do so and can sell at any time for any reason. On here, lenders will generally only want the borrower to agree to allow them to sell the collateral in the event that it's value falls below a certain threshold, but would generally still be considered to be a margin loan.

If you are going to allow the collateral to be liquidated then you are essentially taking out a loan using your reputation as "proof" that you will repay. According to your OP you are asking to borrow a total of (just over) 7.5 BTC which is significantly more then your reputation should allow you to be trusted with at one time.