I was approved for a personal loan through north capital equity group... however they are asking for collateral in the form of the first six months payment of 201.00... however, it is said in the contract the 1206.00/first six months will go toward the loan principal. Have you ever heard of this company?

If they want you to "pay" them for a loan, run, that is not how real loan companies work. They could merely hold that payment out of their check to you, if this was real

Well, I found a couple of comments on Yahoo answers, not that I would totally trust anything there but... :
Does anyone know of North Capital Equity Group? - Yahoo! Answers

Also went to the online bbc. The company is rated F, but seems to have more to do with the type of business they are and the lack of ability to get info from them. Also note their blurb at the bottom on the pre-pay concept:
BBB Review of North Capital Equity Group in Minneapolis, MN
In other words, they're basically saying what Fr_Chuck did: run.

Now back in my poor days ( guess that is now too) I have had to deal with every type of loan place. In some when I got my loan, the interest for the loan was held out of the check I got. In another play the first 3 payments were auto held out of it. I have seen and would accept a payment of 20 or so dollars for a background or credit check fee ( but would not do it personally)

If they want you to pay them so many payments without getting the money first, there is nothing to stop them from deny the loan and finding a reason to still keep your money.

Now if they are merely keeping this payment up front from the loan, and you are not writing them a check, that is different, ( means you like others have extremely bad credit)

You need to look at getting a loan if your credit is so ppoor that you have to use this type of place.

Don't do it. I did send him money and they sent me a contract. They then turned around and the "customer service manager" called and said the lender could not get insurance and that they needed more money. I had so much invested that I sent him more and was promised that it would be there. Then I call the next morning when the money was not there and they said the lender backed out. They then advised that they had found another lender offering more money but needed more money. Told the guy that they had put me in more debt... my bank account was then closed and they told me I had to wait until March 31 to get a refund. I was desprite and now I am worse off than ever.