Pawning jewelry at a pawnshop can get you a certain amount
A pawnshop is a financial institution that issues loans secured by personal property that has value and high liquidity. What can serve as collateral at a pawnshop? The list of items is small:
1. Exclusive jewelry made of precious metals and stones, precious and semi-precious stones, expensive jewelry (gold, silver). For example, on the page https://www.zslombard.com.ua/ru/uslovija-kreditovanija/pod-zastavu-juvelirnyh-izdelij Pawnshop "Zolota Skrynya" offers a loan secured by jewelry.
2. Antique furniture and interior items, paintings, valuable antiques.
3. Cars and motorcycles.
4. Items made of expensive fur and leather.
5. Household appliances, electronics.
6. Expensive furniture, dishes, clothing.
Valuation of Collateral Items
A pawnshop specialist accepts and appraises items offered as collateral in the presence of the borrower. In some cases, if the item is unique, the appraiser may invite a specialist consultant.
The borrower should not expect that the property offered will be valued at its full market value. As a rule, a pawnshop does not give more than half of the true price of the item offered as collateral. Most often it is 20-35% of the real value. With a low valuation percentage, the pawnshop ensures its safety in case of financial losses if the loan is not repaid.
Interest Rates of Pawnshops
In banks, interest rates on loans are calculated based on an annual rate and on the balance of the debt. In contrast, pawnshops charge interest daily on the entire loan amount. At first glance, a rate of 1-3% seems small, but when converted to an annual rate, it amounts to at least 365%.
Obtaining a Loan at a Pawnshop
A pawnshop loan is processed quite quickly. The borrower needs to present their passport and a document proving ownership of the property offered as collateral.
After the appraisal by the pawnshop employee, the borrower and the pawnshop draw up and sign a pawn ticket, which includes three contracts:
• a loan agreement;
• a pledge agreement;
• an appraisal and price agreement act.
The data that must be entered in the pawn ticket:
1. Legal address of the pawnshop.
2. Full name and address, as well as passport data of the client who took the loan.
3. Loan amount.
4. Exact description of the collateral item.
5. Agreed appraisal act.
6. Terms of the loan agreement indicating the interest rate, conditions and repayment period of the loan amount.
Additional paragraphs of the loan agreement may include clauses on the possibility or impossibility of early repayment of the loan and extension of the loan agreement.
The pawn ticket is a strict reporting document. Before signing the loan agreement at the pawnshop, the borrower must carefully read and thoroughly study all its sections and only then sign the agreement.