Why it's easier to pawn gold than to go to a bank?
Posted by chirag on May 25th, 2022
The process of applying for a loan in a bank takes a long time. First, employees check the client\'s credit history and then ask them to provide a whole package of documents, which may take several days to collect. Pawnshop employees assess the financial viability of a client based on their car, so they do not need other evidence of their income. To pawn a car and get a loan, just present a few documents (passport, identification code, technical passport for the car). You can pawn your gold jewelry and get cash from a pawnshop in just half an hour.
How to choose a pawnshop?
Putting your gold in a Gold And Loan Pawn Shop is not as risky as it seems at first glance. It is important to pay attention to the company\'s history, title documents, and reviews. Moreover, text reviews should be treated carefully, since on the internet they can wind up both positive and negative on their competitors. It is better to pay attention to video reviews, they are not yet forged on such a scale as text ones. If there are no title documents, it means that the organization is engaged in illegal business. To pawn the gold jewelry and not worry about its safety, it is better to find another pawnshop.
Each reliable Pawn Shop Diamond Rings draws up the transaction notarized and under the law of the country. It specifies the terms of the transaction, the terms of loan repayment, and the interest rate. This document is filled out by a pawnshop employee and then handed over to the client. The act of acceptance and transfer is another mandatory document that specifies data on the condition of the damage (if any).
Valuation principles, estimated loan amount, and interest rate.
An expert working in a pawnshop examines the gold, explaining in detail to the client what exactly the total amount of the assessment depends on. The market value of the car and its condition must be taken into account.
Conditions vary from pawnshop to pawnshop.
If a customer takes out a loan and leaves the gold jewelry in their use, they can count on 60-80% of the market value of the gold. If a person is ready to pawn gold jewelry with a hallmark, they can count on a larger amount – in the range of 80-90%. The interest rate depends on the loan amount, repayment period, and the gold jewelry itself. As a rule, you need to pay about 3-6% per month. In many pawnshops, you can mortgage a piece of gold jewelry at 10% per month.
It should be noted that the activities of pawnshops are closely monitored by state bodies. Therefore, the purity of transactions is beneficial for both pawnshop owners and their customers.