The jewelry lien can be used to get loans by the bank with a low interest rate. However, as a good financial education dictates: it is necessary to research, analyze and verify other modalities, their rates and advantages. But for those who want to avoid bureaucracy and hassle when getting a loan, pledging jewelry can be a solution
However, like all financial arrangements, the jewelry pledge has its rules, fees and conditions of engagement. Therefore, you need to understand as well as the pledge of assets works to get credit.
What is the jewelry pledge?
Because they are of great value, both sentimental and financial, jewelry is widely used for loan approval. In this process, the institution’s client offers the jewelry as a guarantee for hiring some service, such as the loan.
However, if he does not pay the debt, he loses possession of the jewelry. In this way, it becomes the bank, as a form of debt discharge.
How does the jewelry pledge work?
To pledge jewelry, you must apply for the pledge loan to the desired institution.
In this case, the analysis is not done in credit protection agencies such as the SPC or Luckiest Bank. However, the financial institution is responsible for advising the value of the jewelry to then release the loan.
Jewelry accepted for the pledge loan includes:
- Objects in another;
- Noble Metals;
- Exclusive Items
The valuation for the jewelry pledge is made by a professional and is based on several factors. The condition and purity of the part are very important when determining the value of the good. However, clad items or semi-jewelry are not accepted by the institutions. This is because they do not have enough value to secure a good loan and your repayment.
The amount of this credit may even reach the total value of the item. However, most banks choose to release only 85% of their assessed cost. Thus, the agreement is made between the two parties, which defines the payment terms, fees and conditions.
The required documents for the pledge loan are:
- Photo identification document;
- Proof of address;
How long does it take before the money is released?
One of the advantages of seizure of property is the security that the bank possesses by obtaining possession of the property during the payment of credit. Therefore, the money goes out at the time of request, after the analysis of the asset.
What happens if the debt is not paid?
As the part serves as a guarantee to the bank, after 30 days of default occurs the customer notification for its settlement. If payment is not made, the attachment is made. This means that the bank takes possession of the asset and sells it at auction. It serves for the institution to get back the amount given.
However, if he earns a surplus, the profit is delivered to the former owner of the item.
Is it worth the loan with jewelry pledge?
The secured loan may be a good solution for those who need some value but it is negative. Generally, this type of credit has lower interest rates due to reduced risk of non-payment.
Among the advantages of jewelry pledge are:
- Low interest rates;
- Agility in obtaining value;
- Does not require guarantor;
- It does not require credit analysis.
However, it is worth remembering that this type of loan, if not honored, causes the loss of the pledged asset.
Disadvantages of jewelry pledge include:
- Risks of loss of good;
- Devaluation of jewelry in the evaluation;
- Stagnation of the value of the good during the contract.
Therefore, the debtor needs to be sure of their ability to meet the monthly payments. Also, keep in mind that the pledge of jewelry is a type of loan that should only be requested as a last resort to avoid losing your property. Get organized financially through the calculator sheet for financial independence!