The trick here is not that the buyer will be able to sell it for higher, but buyer could be using it for utility on rollbit anytime they want. The main question was that if you would like to buy it from rollbit or from me or someone else just a regular person? We all know that people would rather buy it from rollbit.

It means that if there is an NFT lending situation where NFT is used as collateral, then rollbit definitely low ball the offer, and then use that to get a lot of NFT and sell it for higher. Something that I can sell for 10k could be 50k coming from them, numbers are made up but the logic stands. This means I get a 10k loan, give my 10k worth NFT, then if I fail, they sell it for 50k. Do not take the numbers literally, but the mindset of this business idea definitely works on this situation and I can approve it to be fair.

The users can take loan upto $10k and if they want to go above that limit then they would need to contact the support team for approval.As said only few selected NFT are categorised which are eligible for this collateral loan.If the user don't repay it within 7 days then NFT would be sold out at same price or profit on marketplace so not loss situation for them.

I would definitely support something like this. In real life we take out a loan and if we can't repay it then bank repossess something that we own. Like you take out a mortgage but if you fail to pay it then they take away your house. That is how it works and that is why I believe that we should definitely be considering this as an option in NFT world or crypto world as well.

Decentralized finance allowed this to start a little bit, it is still "giving loans to people who have money" style, you give something and you take money for it and then you repay that and get your money back, in this case instead of money it is NFT, but there is still no system in place for people with either no money or little amount of money. Like with banks, you could have 200k, and get another 300k as a loan and buy a 500k worth house, crypto debt has not reached that level yet, hopefully it will find a way to do that.

interesting update, thanks for share...at least to me this sound as a "massive" update.
of course these are the rarest and valuable NFTs https://blog.rollbit.com/introducing-nft-loans/
but I would suggest also to evaluate other NFTs related crypto collectible (some items are sold with NFTs like Austrian crypto stamps) and generally speaking, why not at this point , evaluate the possibility to give a loan with some other crypto collectibles (coins or paintings).

We will see how they handle the default loan case and what precautions they take in that case but as they have already clearly mentioned in their loan blog how all this process will be handled the default case arising seems minimal to me.So they will not be in loss most probably.

They will probably never be in a loss, even if the loans are defaulted. I have seen way too many people do it even here, literally on bitcointalk, and manage to make some money from it over a year long period. So if regular people can do it here, then rollbit will definitely be able to do it as well. Plus, the NFT they are getting is their own, so they sold it and now they will sell it again so they know how much it can go for.

This means we are talking about a place that will end up with a much better return to the investment for them. If you are getting a 100 dollar worth of NFT which was paid 200 dollars by someone and give 50 dollar loan, then you know you are going to be in profit in the end.

I am sure in this loan section is only filled with people who borrow with high amount because the collateral is also has high value so there is no loan interest even though in just 7 days this is quite interesting, and it is very likely to attract many users to try it, as you said not only for gambling but also something urgent.

10k is not really a small amount. I mean if we are talking about repayments, we need to look at how long it is given and not the interest rate all that much (surely interest rate is important too). So, let's assume that you are given a chance to pay in 2-3 years? That's EASY loan, you take it, you buy some good coins with it that pays you staking amounts as well, and then you wait for it to skyrocket.

In the next 2-3 years, almost all coins (not shitcoins) will have a 2x situation one day, that is something I really trust, that is why all of my investment is in crypto. Income part is very important because we need to also pay the debt back as well without dropping our coin count. So if you can handle that, you are going to be doing fine. It is still a very tough situation and you may lose all of your money AND the NFT you gave, but that is a risk that you take anyway.

An against the option of using your NFT as collateral to get a loan not minding how little the interest may be, loan repayment is not that easy most especially when you don't know what the future holds so instead of taking the risk of using your NFT as collateral I will advise you if not for a case of emergency, you should rather hold your NFT since it's an asset for long term goal, but if there is another steady source of loan repayment without having to look to the collateral then you can go ahead to get the loan.