Razor1911
Active member
Firstly, What is a collateral free loan? When you take a loan or any financial institutions, you need to provide a security property, it may be money or land or any property which has some value. This security asset is called collateral. Without collateral, you can't take any loan from the banks.
But due to the pandemic, the revenue of the banks are in a dire situation. There is a liquidty crunch in the economy. Thus the govts of many countries are providing collateral free loans. Means you don't have to give security in order to take loans. Surely that will help to recoup the economy to normalcy.
But as an individual, will you prefer to take such loans? As such loans are for limited period only, you can't claim such offer later again.
But due to the pandemic, the revenue of the banks are in a dire situation. There is a liquidty crunch in the economy. Thus the govts of many countries are providing collateral free loans. Means you don't have to give security in order to take loans. Surely that will help to recoup the economy to normalcy.
But as an individual, will you prefer to take such loans? As such loans are for limited period only, you can't claim such offer later again.