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No deposit? No worries, your mortal soul will do!

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Nila Sweeney

Borrowers who don't have any security can now use their soul to help them secure a loan according to Reuters.

The news service agency reported that in Latvia, such a deal is being offered by the Kontora loan company, whose public face is Viktor Mirosiichenko, aged 34.

Clients have to sign a contract with the words "Agreement" in bold letters at the top. The client agrees to the collateral, "that is, my immortal soul", the report stated.

It quoted Mirosiichenko saying that his company would not employ debt collectors to get its money back if people refused to repay, and promised no physical violence. Signatories only have to give their first name and do not show any documents, it said.

"If they don't give it back, what can you do? They won't have a soul, that's all," he told Reuters.

Mirosiichenko said his company was basically trusting people to repay the small amounts they borrowed, which has so far been up to US$500 for between 1 and 90 days at a hefty interest rate. He added that so far about 200 people had taken the loans over the two months the business was in operation.

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