Loans without legitimate collateral are actually risky, collateral require to have increased benefit then bank loan. In that situation loaner can make income with offering collateral to a person else.  If loaner do organization like this, there is no danger for his loan. Financial institutions are creating earnings for several years in this way, financial loan sharks also. Dangerous function, but they are around so several centuries that its seen how much profit thwy make each calendar year.  I took loan from bank, and I'm having to pay them again every single thirty day period for that. I essential funds and for me that was only way to get income without performing anything illegal.