What should I do if a lender asks for collateral I cannot afford to lose?

This is where you must trust your reasoning—not their pressure. I've seen people pledge land, tools, livestock they depend on. Then hardship comes, and they lose everything. That's not lending; that's a trap dressed as opportunity. A just lender understands your situation. They know what you can actually afford to lose. If they demand your only means of income as security, something is wrong. Ask yourself: What happens to my family if I cannot repay? If the answer terrifies you, the terms are unjust. There are alternatives—slower, smaller, but safer. A group savings circle. A microfinance cooperative where collateral is your character and your community's guarantee. A lender who takes a smaller loan with flexible repayment. Yes, interest may be higher. But you keep your dignity and your livelihood. Money should serve human life, not consume it. When someone demands collateral that would destroy you if lost, they're not offering a service—they're offering a test of desperation. You can refuse that test. Your reason is enough.