bad credit and loan with land as collateral?

[tamarlane]

A thai friend of mine needs cash but he is very reluctant to go to a bank for a loan. He has plenty of land as collateral for the loan. I am assuming that his credit rating is not too good? Is that a dealbreaker for getting a loan with land as collateral at a bank?

And if not, are there banks more easy in giving loans in aboove situation?

[keeniau96]

The bank is interested in loan repayment, the collateral is a major pain if they have to resort to seizing such. So have to show source of funds and an income to provide adequate loan coverage.

[Pib]

I doubt the bank would make a loan to someone with bad credit even with land as collateral. Banks don't like having to resort to recovering money from a loan gone bad because it takes time and money through the legal system...even with collateral the loan is not risk free to the bank...it just lowers the risk. But maybe if the land put-up for collateral far exceeds the loan value then the bank would consider the loan even with risky credit....but don't know if the Thai laws allow a bank to demand a collateral amount that far exceeds the loan amount.

[trogers]

Banks look at credit ratings, but pawnshops don't. Your Thai friend can always bring his title deed to the pawnshop.