People often have situations where money is urgently needed, and there is no one to get it on loan. If you are sure that the financial situation will recover, then for this you can use pawn loans. It is only necessary to have a thing that will be provided as collateral.
A loan transaction has its own characteristics. Before you draw it up, you should familiarize yourself with the pros and cons of the procedure. It is also important to choose the right organization to receive money. Now almost all cities have pawnshops. Only in each organization can different things be accepted.
The concept
Lombard loans are short-term loans secured by property with a high level of liquidity. When money is not returned, things are used for realization. The security is considered a guarantee to the lender. They may be:
- Securities.
- Jewelry.
- Antiques.
- Household appliances and electronics.
- Clothing.
- The property.
- Transport.
Lombard loans are usually repaid at a time. Such loans are similar to bank loans. If jewelry is usually taken in pawnshops, then banks work with real estate.
Work of pawnshops
As a creditor is a pawnshop. His work is regulated on the basis of the Civil Code of the Russian Federation and the Federal Law of the Russian Federation No. 196 “On Pawnshops”. According to the approved rules:
- Pawnshops cannot dispose of the client’s property.
- Workers must maintain professional secrecy regarding pledges.
- The item is valued at market value and agreement.
- The transaction is executed in writing.
Features of obtaining
Lombard loans are not issued with all things. The company should be insured against the difficulty of selling the mortgaged property in case of non-return of funds. Therefore, they accept only special valuables.
The property is taken after providing a passport to a client who is 18 years old. People with drug, alcohol intoxication cannot be borrowers. Otherwise, there are no restrictions on obtaining loans.
Evaluation principles
This procedure does not occur at the full cost of the goods. The assessment has the following features:
- Precious metals are evaluated by net weight and sample.
- Household appliances and electronics are evaluated by appearance, condition, release date.
- Clothing - for wear.
Collateral value will be less than market value. Often people complain that for a valuable thing they were given a little money. But the transaction is carried out on such rules.
pros
Lombard loan for real estate or other valuable property has the following advantages:
- There will be no difficulty in the solvency verification procedure.
- Simplicity of design.
- No need to say information about the place of work, income, so the list of documents is small - a passport and security paper.
- If the borrower does not have the means to pay the loan, the property is sold, and the client is exempted from payment.
- The purpose of lending can be any.
- There are no penalties for early payment.
- A pawnshop is an analogue of renting a cell at a bank, but this service will be cheaper.
- The pawnshop decides to issue a loan without taking into account credit history.
- It is possible to extend the term of the contract, and the number of renewals is not limited.
- Anyone can get loans, including pensioners.
Minuses
Lombard loan has disadvantages:
- Jewelry is valued at the cost of scrap.
- There are restrictions on the security deposit provided.
- To receive large amounts, you must provide valuable property.
- The high rate of a Lombard loan is about 0.3% per day, and 9-13% per month.
- Large fines.
- The term of a Lombard loan is not more than 1 year.
- There is a risk of things disappearing (when robbing a pawnshop).
If you need money for a short period, then a Lombard loan will be the best choice. Banks do not provide such services, they are executed in special organizations. The funds received will help to help out at any time.
Lending terms
There are some conditions that must be met in order to obtain a Lombard loan. Real estate or other valuable property can be used for the transaction after their analysis. Performs this procedure specialist. Usually it is held at the pawnshop itself, but sometimes an invitation from a narrow-profile specialist is required.
A feature of lending is considered to be a lower value of the property than its real price. Usually it is not more than 50% of the current price. But even this rarely happens. Many announce the price within 20-30%. The pawnshop insures itself against financial losses. For example, the client will not be able to pay the loan in a timely manner, therefore, the institution should independently engage in the sale of collateral.
There is another feature of such a loan - interest is calculated at the daily rate. It is usually 1-3% per day. The interest is transferred not to the balance of the debt, as is the case with banks, but to the entire amount.
Clearance procedure
After evaluating the property, the client is given a loan secured by real estate. A pawnshop loan is issued using a security ticket. This is a document in which there is a contract, an act of negotiating the price of a pledge.
Experts advise you to carefully read the information on the ticket. The following information should be there:
- Passport data of the borrower.
- Details of the pawnshop.
- Amount issued.
- Description of collateral.
- Estimated value of collateral.
- Maturity.
- Details of the bank through which the loan will be paid.
When the information is verified, the document is signed. Then the pledge is transferred to the pawnshop. He will be there until the refund. A ticket is also issued to the client. At the checkout they give him money. It takes about 15-30 minutes to complete the design.
Repayment Features
If the client paid money and interest, then the thing is given to him. To do this, you need to provide a passport, receipts and a ticket. But often there are situations when timely payment is not possible. There are several such cases:
- If the client does not have money, then he can extend the security ticket. Then you have to pay more.
- If the client does not pay the loan, then the workers will contact him and offer to pay the loan. But then there is an accrual of fines, which are indicated on the ticket. If, during the specified period, the client has not paid the loan, then the security is transferred to the ownership of the financial institution. The pawnshop should list the difference between selling price and debt, but usually it is not.
Gold loan
Before you get a loan for jewelry, you should consider some nuances. Care must be taken in choosing the institution. This is necessary in order not to fall for scammers and insolvent companies, as well as not to lose money on bets. It’s best to choose the organizations that you or your friends have already contacted.
The pawnshop must have a license for its work from the Central Bank of the Russian Federation, a certificate of registration. The contract must indicate the signature of the employee and seal. If gold is given without refund, then a contract of sale is drawn up. And when applying for a loan - a security ticket.
Gold can be turned over at the cost of scrap. Usually accepted coins, jewelry, orders. A gold sample may not be indicated, it will be determined by a specialist. You must have a passport with you. Return is also on the passport. Citizens under the age of 18 are prohibited from entering into such transactions.
It must be borne in mind that the thing must be authorized for sale. You must try to return the funds in the right amount as soon as possible, since such services accrue large interest. Such a service is suitable as a short-term loan. Other valuable items are accepted at pawnshops.Sometimes they take silver, antiques, equipment. In large cities there are pawnshops where you can hand over various things.
Securities loan
A loan is also issued against securities. But you need to take into account the circumstances related to the subject of the pledge. Lenders have some requirements for securities with which you can take a loan. They must be liquid. These include the following:
- Government securities.
- Securities secured by a state guarantee.
- Commercial bills, bank acceptances.
- Shares and bonds of large firms.
- Savings and certificates of deposit.
- Certificates of investment funds.
To determine the amount of securities is more difficult than with property. Its size is affected by the quality of collateral, type of securities, complexity and terms of implementation. The loan amount may be in the range of 50-80 percent of the assessed value.
Lombard credit is one of the fastest methods to get money, but you need to carefully weigh the pros and cons. It is important to make calculations, compare the service with bank loans, and only then a decision should be made.