Things that can be used as collateral.

btaliat

VIP Contributor
Most people have found it difficult to obtain or secure loans in banks due to lack of collateral which they need to secure the loans they request for.

There are many things that one can use as collateral in as much the item is almost if not equivalent to the loan in monetary term.


Property like house is the first on the list on the materials to be used for collateral. One can use his or her house as a collateral while securing a loan in the banks. It is however to be noted that the banks or the lender only need the certificate of occupancy.

Other thing that can be used as collateral while securing loans is certificate. When I mean certificate, I mean the educational certificate. Many people have successfully used their degree certificate in securing loans especially when the loans are not too much.


However, there are some materials that can not be used for collateral. Examples of those materials is maybe children or any human being. It is not legal to use people as your collateral.
 

Lens1000

Verified member
I do not really subscribe to loans most especially in Nigeria. The interest is killing and at the end of the day you will never get something tangible out of it. You will end up paying back with the all the money you collected most especially when the business you invested on is not fetching much profit
 
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btaliat

VIP Contributor
I do not really subscribe to loans most especially in Nigeria. The interest is killing and at the end of the day you will never get something tangible out of it. You will end up paying back with the all the money you collected most especially when the business you invested on is not fetching much profit
I am not in total support of this but I am not disregarding the fact that most financial institutions don't put in place some platforms that can ease payment of loans for their borrowers. They do wish they are unable to repay the loans so that the collateral cn be theirs and it seems Nigerian government is not doing much to prevent this.
 
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Augusta

Valued Contributor
I do not really subscribe to loans most especially in Nigeria. The interest is killing and at the end of the day you will never get something tangible out of it. You will end up paying back with the all the money you collected most especially when the business you invested on is not fetching much profit
I support this notion of yours loans in Nigeria is not just it. People are just looking for avenue to rip others off. The high percentage interest is a big no to me. I believe a loan should serve a purpose it was meant for than having to repay back with so much interest it doesn't even make any economic sense
 
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Lens1000

Verified member
I support this notion of yours loans in Nigeria is not just it. People are just looking for avenue to rip others off. The high percentage interest is a big no to me. I believe a loan should serve a purpose it was meant for than having to repay back with so much interest it doesn't even make any economic sense
The aim of the loan merchants is to make huge profit which makes them smile while you suffer .
I have controlled myself by not accepting any loan offer. I prefer investing on what I have at my disposal and manage it well. Loan in Nigeria is all about slavery. you work they earn and you will see their stomach getting fatter
We really need to be more disciplined inorder not fall into their trap
 
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btaliat

VIP Contributor
I support this notion of yours loans in Nigeria is not just it. People are just looking for avenue to rip others off. The high percentage interest is a big no to me. I believe a loan should serve a purpose it was meant for than having to repay back with so much interest it doesn't even make any economic sense
You are right and I think government is not even helping the matter. Those online loan applications are the deadliest. They rip off their borrowers and even go as far as tarnishing their images for defaulting. And the commercial banks don't even like borrowing average people money.
 
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Augusta

Valued Contributor
You are right and I think government is not even helping the matter. Those online loan applications are the deadliest. They rip off their borrowers and even go as far as tarnishing their images for defaulting. And the commercial banks don't even like borrowing average people money.
You are right about tarnishing ones image there's one that will even get all the contacts on your phone and tell them you are a thief so they need to avoid you. So one need to be very careful with loan apps online or else you get your name soiled which might take time to redeem again. So take time before using any
 
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Sammyesx

Verified member
I believe the system in which loans are been aquired and the collateral require should be review and updated , most of these institutions require an individual to valuable collateral to get an amount that is not even as valuable as the collateral that is required .which is one of the discouraging factor in getting a loan.
 
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Alexandoy

VIP Contributor
Real estate is the best collateral for a bank loan. However, the title should be clean and has no encumbrances whatsoever. The car can also be a collateral and you can still use it but it has many requirements. That is one issue with bank loans. They are so strict when it comes to the collateral.
 
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Abigael

Verified member
Choosing the right collateral is very important when taking a loan. Some properties however are not good for collateral. Such as your house which is home to your family, you don't give that as collateral. It is better to give the luxury properties such as a car or that extra land that you have.
 
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btaliat

VIP Contributor
Choosing the right collateral is very important when taking a loan. Some properties however are not good for collateral. Such as your house which is home to your family, you don't give that as collateral. It is better to give the luxury properties such as a car or that extra land that you have.
You know many people that do obtain loans don't even envisage that they may not be unable to pay back the loans hence you are borrowers even using his dearest things as collateral. A borrower should know that anything can happen when it comes to borrowing money for investment and trading hence use what he can part with as collateral.
 
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btaliat

VIP Contributor
Real estate is the best collateral for a bank loan. However, the title should be clean and has no encumbrances whatsoever. The car can also be a collateral and you can still use it but it has many requirements. That is one issue with bank loans. They are so strict when it comes to the collateral.
In my country, you collateral must at least worth your loan even not more than your loan. The bank is doing a business by borrowing people loan and they don't want to run at loss as well. That's why they are always strict when it comes to loan and it's collateral so that even if the borrowers default, the collateral will be sufficient to cover the loss.
 
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Mika

Valued Contributor
In our country, if you want to get a bank loan, you need to give land, house, or gold as collateral. There is also a provision to get a loan by using your security of deposit as collateral but this will work only when you have already acquired a certificate of deposit. Recently, government has introduced a loan where you can use educational certificates as collateral.
 
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