Loans Why do private lenders want the car or jewelry as collateral of borrowers?

[Alexandoy]

There are many private lenders now which are legit because they are registered. But their manner of lending is usurious and with required collateral as uncalled for. Most of them prefer a car or jewelry. The trick is that they would offer another loan when the present loan is nearing completion. That is a ploy for the borrower to default on the payments so the lender can forfeit the collateral.

I have seen that in news reports but there is no legal means to pin down the lender because the forfeiture of the collateral was according to the contract of the loan. Perhaps what the government and media can do is to discourage people to borrow from private lenders because their ploy is tantamount to scamming of the collateral.

 

[Augusta]

Well, I wouldn’t blame private lenders they are also looking out to protect their investments. They will always ask for collateral that they can quickly sell and move on incase the borrower default. So if you don’t want to forfeit your dear things, you pay up on tine and when due.

 

[Chibson]

everyone is looking for profit and in such situation they will want you not to pay back so that they can take the collateral and make profit. Such things are not really common in this part of the world but many lenders use lands. Land is much better because it is more valuable and it is in this situation whereby you refuse to pay back the loan when the required time comes they will definitely take the land.

 

[Sherman198]

Borrowing money to people is not easy this days. You have to be extra careful as the people that borrowed money can sometimes cart away with the cash and not want to pay back. That's the reason why banks turn to taking huge collaterals because they some people may want to evade not paying not paying back. But taking gold or land as collateral can be viable.

 

[Mataracy]

Actually sometimes those private lender might have learnt their lesson in the hard way before from their customers that's why some of them also use to collect something that will really worth the money they give out should in case the customers default in any way.

 

[Chibson]

Borrowing money to people is not easy this days. You have to be extra careful as the people that borrowed money can sometimes cart away with the cash and not want to pay back. That's the reason why banks turn to taking huge collaterals because they some people may want to evade not paying not paying back. But taking gold or land as collateral can be viable.

II don't believe the banks or financial lenders because in a situation whereby someone borrows money and refuses to pay back then you will definitely run out of business and in some cases you will go into huge debt. Before you can be able to take loan banks will make sure that you have a solid collateral such as land or a very good house which can be taken when you refuses to pay the money back.

 

[Sherman198]

II don't believe the banks or financial lenders because in a situation whereby someone borrows money and refuses to pay back then you will definitely run out of business and in some cases you will go into huge debt. Before you can be able to take loan banks will make sure that you have a solid collateral such as land or a very good house which can be taken when you refuses to pay the money back.

Yes that's it....No borrower can run or escape from the bank especially not when they already have your property with them. But let me tell you that, we still have some unprofessional or local money lenders, that if you want to borrow money, though not too huge amount of money, what they will do is, come to your house and measure the worth of your properties, like Gen, Tv, Fridge, AC, chairs and all, then you will bring a guarantor or surety, then they will borrow you the amount with interest. If you fail to pay back on time. After several ultimatum, then they will come to pack your properties worth the amount you borrow.

 

[Chibson]

Yes that's it....No borrower can run or escape from the bank especially not when they already have your property with them. But let me tell you that, we still have some unprofessional or local money lenders, that if you want to borrow money, though not too huge amount of money, what they will do is, come to your house and measure the worth of your properties, like Gen, Tv, Fridge, AC, chairs and all, then you will bring a guarantor or surety, then they will borrow you the amount with interest. If you fail to pay back on time. After several ultimatum, then they will come to pack your properties worth the amount you borrow.

???, This is quite funny. There are also other money lending applications on Google play store that will tarnish your reputation if you try borrow money from them and did not pay on time. I have seen someone who said that they loan app called all his contacts telling them that he is a scammer. This is one of the reasons why I will never borrow any money from any source.

 

[Sherman198]

???, This is quite funny. There are also other money lending applications on Google play store that will tarnish your reputation if you try borrow money from them and did not pay on time. I have seen someone who said that they loan app called all his contacts telling them that he is a scammer. This is one of the reasons why I will never borrow any money from any source.

Lol seriously.....they don't care really, they will call most people on your contact list. I don't know how they get hold of people's contact list. Even if you borrow 2,000 naira and you didn't pay on time, this people will start calling people you know. People that you don't normally talk to lol it's just disgrace!

 

[Chibson]

Lol seriously.....they don't care really, they will call most people on your contact list. I don't know how they get hold of people's contact list. Even if you borrow 2,000 naira and you didn't pay on time, this people will start calling people you know. People that you don't normally talk to lol it's just disgrace!

sometime last year I became very broke and I didn't really know who to borrow money from then I decided to download one of the apps and take a loan. Thank goodness I decided to make some research and seek for people's opinion and someone advised me never to take money from those people because I will definitely regret doing that.

 

[Sherman198]

sometime last year I became very broke and I didn't really know who to borrow money from then I decided to download one of the apps and take a loan. Thank goodness I decided to make some research and seek for people's opinion and someone advised me never to take money from those people because I will definitely regret doing that.

Lol laughs! But seriously when we are broke sometimes we may want to take some actions but it's good as you seek advice from people who had experience. I think the person who advised you has had one nasty experience with them that's he/she to told you not to try to borrow from them lol

 

[Chibson]

Lol laughs! But seriously when we are broke sometimes we may want to take some actions but it's good as you seek advice from people who had experience. I think the person who advised you has had one nasty experience with them that's he/she to told you not to try to borrow from them lol

That is the reason why it is very important that we work very hard on the paying platforms because being broke is too bad and there are a lot of thoughts you'll be having that is unpleasant. I thanked the guy that gave me that advice after some months because if not for him maybe my reputation would have been tarnished by those apps.

 

[Sherman198]

That is the reason why it is very important that we work very hard on the paying platforms because being broke is too bad and there are a lot of thoughts you'll be having that is unpleasant. I thanked the guy that gave me that advice after some months because if not for him maybe my reputation would have been tarnished by those apps.

Very tarnished! Imagine, when someone you don't normally talk to, starts asking you, who did you borrow money from??? I think that's degrading. Because I believe that there are some people you wouldn't want to know anything about you. And when they will now get to know you, it's through borrowing hahaha lol....Not good bro!

 

[Sherman198]

Actually sometimes those private lender might have learnt their lesson in the hard way before from their customers that's why some of them also use to collect something that will really worth the money they give out should in case the customers default in any way.

That's the reason....Many of them have learnt their lessons in the hard way. Many people would have borrowed money from them and run away, without having to pay back the money that they borrowed. I think that's why they eventually came up with collecting some things very big for collateral.

 

[funmi]

I understand why many private lenders collect collateral that is very high before giving out loans to people. There are some that will collect loan and refuse to pay back as at when due. I can agree that lenders use cars as collateral because it will be worth the amount of money borrowed.