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Ten bizarre collateral: Are they accepted when applying for a collateral loan in the Philippines?

Surely, there are forms of collateral that are far more recognizable for a specific population segment.  Availing a collateral loan is a quick option for business owners or individuals who dream of setting up a business in the Philippines–but this type of secured loan is often taken for granted. Let’s take a look at some of the types of collateral accepted in other economies.

Soccer Superstar

In a report published at, superstar player Cristiano Ronaldo was presented as a collateral to the Central Bank of Europe.  According to the article, a Spanish bank had helped in the purchase of Ronaldo and another star player for a whopping $111 million  and later attempted to borrow money from the Central Bank.   Aside from the news that circulated in various sports websites, no other updates were released after the news about soccer superstar collateral came out in mid-2011.  

Luxury Bags

Here’s a less traditional collateral for cash-strapped shoppers.  Tagged by CNBC as a growing industry, using luxury bags as collateral to secure a loan became popular in 2013 in areas such as California and Hong Kong.  A New York City-based non-bank lender zeroes in on Louis Vuitton handbags as a form of collateral, where owners, collectors or retailers can borrow funds of up to 75% of the current resale value of the designer handbag.  

Cattle Collateral

Historically, using cows as collateral is no news.  It has been accepted in several US states, but doing the same in Zimbabwe raised concerns. In an opinion published at, veteran writer Tim Worstall pointed out that this move is a not-so-good indication as it shows the condition of such an informalized economy.  He wrote, “They’re doing this because there is no other source of collateral left.”  

Blanket Lien

Perhaps, sweeping is a good word to describe this type of collateral that is attached to a business loan.  This means that in the event of a default, the lender may sue the business and seize all assets that can be used to satisfy its debts.  Pretty tough, right?

Teak Trees

Just when economies are starting to recover, Thai government announced that owners of “58 economically valuable trees” may use these as collateral when applying for loan.  Qualified collaterals include teak, mango tree, durian tree, tamarind tree and bamboo types. This approach paves the way to a foundation that takes into consideration community forestry principles while providing financial means for the people.

Caveat: Choose wisely

There you have them!  The unconventional types of collaterals may either be bizarre or too harsh on the part of the borrower.  We can say that the nature of collateral loan varies from one locality to another. The availability of resources or the type of organization are only some of the factors affecting this type of loan.

It is therefore a must for you to find an institution that can provide an amicable term and condition for collateral loan in the Philippines.  It’s time that we break the stereotypes about non-bank collateral loans.  Why not take out your land title or OR/CR and get them assessed if they qualify for a collateral loan?  


By |2021-01-22T08:57:02+00:00January 22nd, 2021|Uncategorized|0 Comments

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