loan from bank

[ghak7]

How do you obtain a personal loan from a bank? What collateral do they need? If you don’t have good credit can they deny you a loan?

[bullish]

Small personal loans are usually unsecured loans, so you don't need a collateral for them. However if you apply for a mortgage then the mortgage (it's also a personal loan) is secured by the property you are buying.

The bank can always deny your loan, even if you have a perfect credit.

[Canadian]

Retail banks are business like any other (except that they are allowed to create money out of thin air) and they can refuse to do business with you (give you a loan, open a bank account for you, etc.) at their own discretion.

[trent]

What you are talking about is a credit line, or line of credit, which is usually unsecured. However it's not going to be easy to get a personal unsecured loan, especially in the current economic environment. If you have a bad credit then I guess it will be close to impossible.

[Canadian]

You are right, getting loan will be harder and harder from now on.

[trent]

There is a silver lining here - maybe all the indebted people will finally learn to live within their means, who knows...