No collateraless loan
I could remember those secondary school days of arguing out a debate; ‘I am here to propose the motion that this is better than that or Vice versa’. Is that what we will be doing in this article? Since I don't have a readymade opponent let me just say this is me giving out a factual opinion.
The first stage of accessing a loan is credibility. It goes beyond what you have to who you are. We are talking of integrity and reputation here. Does it matter or maybe I should say, doesn't it matter? When I said there is no collateraless loan, you heard me right, there is nothing like a loan without collaterals.
The terms of loan giving and taking is and will always be settled with in-between collateral. Do you doubt it? I know you are thinking of the last loan you took from your banking app in a few minutes and you felt or maybe as they told you, there were no collaterals in between.
Assuming you were the one giving out the loan, wouldn't it sound as if you are out of your mind. Don't underestimate entrepreneurs, they always know the right English, the right language and the right strategy to apply so they keep staying in [profit]
(https://inleo.io/@leoglossary/leoglossary-profit). 
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Take for instance, that ‘buy ten get one free promo’. Did you really need ten? You failed to watch through the lens. Many always key in, it always looks like an extra and of course it is but on the other end, the entrepreneur gets to sell more.
Calculate this in the large sales and rapid production and you will see that he lost entirely nothing. In short, you are the one doing him a favor. Oops!! I hope I didn't leak out marketing secrets.
How about hyping the price of a goods or services and on the later date give out a 50% discount? We see this more often in a boutique. Clearance sales, this and that, being an entrepreneur indeed is one strategic environment.
I saw such an advert on a Billboard as I was returning. buy a drink and get a plate of free meals. Wow! That sounds fantastic, I had to chuckle a little because I know the price of that drink will for sure cover the meal too. Did they say you are paying for the meal? NO.
This is also very related to the environment of loans. In short, this is why I see a big future for the collateral markets. It is something that is bound to explode as RWA (Real world Assets) tokenization begins to gradually take shape. Maybe I will get back to this in the later part of this article.
My concern is how we can understand that we’ve been swallowing a false pill. So what are collaterals? What is pledged in exchange for goods or services. The banking system is very good at this. So why then should one say he took a collateraless loan? Didn't you pledge something? Or maybe I said ‘what is pledged’, you should also note that ‘the what’ here can be ‘who’. 
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What am I saying, a collateral can be a person rather than just inanimate things. So didn't you pledge your reputation. Didn't you give out your name? How about your phone number? Or you even forgot you had to enter in your BVN (Bank Verification Number) and your NIN (National Identity Number).
Are these not collaterals? It seems you never saw it that way; you are the collateral in that loan. Sorry if it sounds a little upsetting but it is what it is; there is and there will never be a collateraless loan. Free gifts are free gifts, angels investors and family support programs are there too but when it comes to loan, summit collaterals.
In the world of professional businessing, trust is secured through the needed credibility. When you fail to pay of course your phone will be ringing as if you put music on repeat.
Your credit score is at risk here. Many of these financial apps even go as far as demanding close relative contact or scanning through your contact list themselves.
To conclude, let me add, as I earlier said, this will give rise to an expanding digital markets as many begin to understand the connection between collaterals and flexible loans. In the decentralized space, it won't be about identity but rather, pledged assets to take substantial financial aid to push projects. This is where I was pushing RWA expansion in. There is more to talk about on this but let me let us digest the former; loans are tied to collaterals.