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Pawn Loans

Pawn credit is a loan in line with new lifestyles characterized by the simplicity of the request and the speed of disbursement of the loan, which takes place in a secure and confidential manner without the need for any asset investigation on the customer. The amount disbursed is based on the value of the asset pledged, and the duration is flexible, 3, 6, or 12 months with the possibility of renewal up to 3 years.

The customer subscribes to a bearer policy and immediately obtains the agreed sum of money, leaving his assets (gold, silver, branded watches, jewels) as a guarantee and safe, which he can repossess by repaying the loan, including interest and expenses.

What is pawn credit, and how does it work?

Pawn credit is a form of financing that both finance companies and banks can grant. The pawn loans are low-value loans secured by a pledge, a real-type guarantee, on an asset. In practice, the consumer delivers an object in exchange for money, with the possibility of repossessing it by returning the estimated value of the object plus the established interest and any expenses.

What items can be pledged

In general, valuable objects (gold, precious coins, jewels, watches, silverware) with more definable market prices are pledged. However, some pawn loan providers also accept other goods, such as paintings, carpets, and furs.

How do you obtain a pawn loan? How does a pawn loan be disbursed?

The pawn loans do not provide for the presentation of any particular documentation; on the contrary, it allows for immediate financing to be obtained through the only guarantee represented by valuables, such as for example gold, jewels, stones, and watches, which are valued and estimated based on their commercial value.

On the basis of the estimate made for the guarantee presented, the amount of the loan will be defined, and the interest rates will be unchanged for the entire duration of the contract.

However, pledge loans do not provide for the disbursement of exceeding certain amounts that may vary for different service providers and provide for a duration that usually does not exceed twelve months, although in special cases, it can also be postponed.

The bureaucratic process necessary for granting the pledge loan is not very long, as only the technical times are foreseen to ascertain the legitimacy of the asset to be pledged and for the signing of the bearer pledge policy.

How long can the pledge last, and how to redeem it

The duration established by law ranges from a minimum of 3 months to a maximum of one year. From the information sheets that we have analyzed, it appears that the duration is generally six months and can be renewed one or more times according to the bank’s policies. When the policy expires, the customer has two alternatives:

  • Can repossess the asset (technically speaking of “redemption” ), returning the sum received on loan with interest that varies from bank to bank;
  • If the owner fails to redeem the asset when the policy expires, the pawn loan provider puts the item up for auction (this happens 30 days after the policy expires). Suppose the asset is sold at a price higher than the sum owed to the bank (including interest, commissions, and auction fees); the difference is paid to the former owner. A rather remote eventuality, also because auctions are good opportunities to buy valuable objects at prices below market prices: in any case, only 10% of the objects involved end up being sold at auction.

Get your pawn loan now at competitive prices at ReCashLoan.

Pawn credit is the simplest and oldest form of credit that gives new life to often unused valuables by giving immediate liquidity to your projects and the various needs of everyday life! Contact for highly affordable pawn loans at ReCashLoan allows you to obtain a loan safely and quickly, responding to the need for immediate liquidity by giving an asset as a guarantee but without losing ownership. In 98% of cases, the property is redeemed and returned to the owner!

Pawn Loans
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