Have you ever seen such bizarre methods of collateral and borrowing before?

Ritu13

Usually, when in debt, we often mortgage assets such as cars, houses, and real estate to the bank for repayment. When in need of a loan, we also use valuable items like houses and cars as collateral for loans, a common practice, right? But today, let's talk about something different – let's explore the world of 'Cheese Loans'!

Yes, you read it correctly – 'Cheese,' too, can be used as a commodity for loans. In the northern region of Emilia-Romagna in Italy, four banks accept a type of cheese called 'Parmesan' as collateral in exchange for loans. If the cheese producer who used it as collateral cannot repay, the bank will sell the cheese. If the value of the cheese drops, the bank may demand the borrower to compensate with more cheese or money.

Now, the question arises – what kind of magical cheese can compete with houses and cars as collateral? Let me tell you, it's the 'Parmesan' cheese, considered one of the best cheese varieties globally, often hailed as the 'King of Cheese.' A wheel of Parmesan cheese weighs around 40 kilograms, with a value of approximately $4 per kilogram. Producing a whole wheel of cheese requires about 550 liters of milk. The process from milk to cheese is intricate and lengthy. Not only is the cheese-making process stringent, but the maturation process also takes up to two years. Even the cheese makers need 10 to 14 years of training before becoming masters. Each cheese wheel is labeled, allowing customers to check the quality of the milk used.

Gold always shines, and so does anything of value, even if it's just a piece of cheese!

Yamini003

Cheese seems like the more expensive it is, the smellier it gets.

Jiger955

The reason we find it bizarre to use it as collateral is simply because we are not familiar with it.

Iravan774

The most common way of settling debts is by repaying with goods.

Niti998

Bartering, this is originally the most primitive form of trade.

Niti998

Bartering, this is originally the most primitive form of trade.

Kahn332

Anything can be used as collateral; it depends on the needs of the creditor.