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Using your NFT as collateral is a realistic way to get cash fast without having to sell your NFT. However, there are many risks involved for both borrowers and lenders alike.

Collateral may help you qualify for a loan, particularly if you have bad credit. Because borrowers assume more risk with a secured loan, lenders may offer lower rates in exchange.

The Reserve Bank of India (RBI) may increase the limit of collateral-free loans for micro & small enterprises (MSEs) from Rs ...

Also, collateral-backed loans tend to have quicker approval times since you’re reducing the lender's risk. This is particularly beneficial if you need funds for an emergency.