The pawnshop is chosen by many people as an alternative to consumer credit. What are the advantages of this type of loan? How it works?
How it works?
The pawn loan is made against the deposit of a valuable object (jewellery, furniture, fine wines, furs, musical instruments) a loan is granted immediately. This loan represents between 50% and 70% of the value of the object according to an estimate on the auction market. The loan is based on a contract of one year (or 6 months according to the prevailing legislation) renewable. To renew the contract it is enough to pay the interest year-round. You can retrieve the item whenever you want it provided you repay the entire loan as well as interest pro rata to the number of months. The interest rate depends on the value of the loan. If the object is not recovered at the end of the loan and you do not renew the contract, the object will be auctioned. The proceeds from the sale are used to repay the loan and interest.
Pawn service is a great relief for many people and very accessible since we even have pawn stores online. Most advantages are:
• Speed: the loan is granted virtually within the hour, it is an advantage for those who need cash quickly.
• Accessibility: Everyone can claim this loan, no solvency checks will be carried out. You need only present a valid identity document, a proof of residence of less than 3 months and the papers of the object (invoice, certificate of authenticity, guarantee ...).Tip: Before you take out a loan check your repayment capabilities. A loan commits you and this decision should not be taken lightly.
• The price: the interest rate is lower than the rental price of a secure room for valuables.
How it works?
The pawn loan is made against the deposit of a valuable object (jewellery, furniture, fine wines, furs, musical instruments) a loan is granted immediately. This loan represents between 50% and 70% of the value of the object according to an estimate on the auction market. The loan is based on a contract of one year (or 6 months according to the prevailing legislation) renewable. To renew the contract it is enough to pay the interest year-round. You can retrieve the item whenever you want it provided you repay the entire loan as well as interest pro rata to the number of months. The interest rate depends on the value of the loan. If the object is not recovered at the end of the loan and you do not renew the contract, the object will be auctioned. The proceeds from the sale are used to repay the loan and interest.
Pawn service is a great relief for many people and very accessible since we even have pawn stores online. Most advantages are:
• Speed: the loan is granted virtually within the hour, it is an advantage for those who need cash quickly.
• Accessibility: Everyone can claim this loan, no solvency checks will be carried out. You need only present a valid identity document, a proof of residence of less than 3 months and the papers of the object (invoice, certificate of authenticity, guarantee ...).Tip: Before you take out a loan check your repayment capabilities. A loan commits you and this decision should not be taken lightly.
• The price: the interest rate is lower than the rental price of a secure room for valuables.
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