Collateral problems

Hi Shawn

I can understand your problem. Nowadays, getting loans is becoming easier. But on the other hand, it involves too much of paperwork. Different banks have different procedures of giving a loan. Please contact different banks for this purpose. I believe some banks will make it look easier.

Please do let us know your feedback

Roxette

[quote=shawn]How do you get around all these banks that want co much collateral for such a small loan?

This is insane. Try and get a $15K loan and they want 20K in collateral.

Frusterating.[/quote]

I understand where you are coming from. When you don't have sufficient collateral, obtaining a loan becomes a very difficult task.

These banks always want to cover themselves with collateral just in case you default. They ask for 20k in collateral because they know they will never be able to receive full value of your collateral if they ever have to take it from you and sell it. So they overcharge you in order to cover any potential loss they may have when trying to sell your collateral.

But you do have many other options to look into. Try to inquire about unsecured loans at your various banks and lending institutions. unsecured loans don't require collateral. They mainly base their lending decisions on your credit and your income.

If you have a steady income that is above your loan amount then chances are you will be able to find a bank or a lending company that would be willing to provide you with a loan. That is assuming that you have good credit. If you do not have good credit then you have to get a cosigner in order to receive this type of loan. but in short, there is still hope for your situation.