For those who happen to have diamonds or jewelry but not enough cash, a good way to get a loan would be to use the diamonds as collateral. Yes, there are such things as diamond loans Largo FL and they involve using the jewels as a safety keep in the event that one cannot pay back the loan. Here are a few facts about this type of debt.
Now, the great thing about this type of loan is that it is a quick loan since diamonds will be used as collateral. It is safe is a sense that if the loan is defaulted, then the lender can simply sell off the precious stone for the money. However, the testing is pretty rigid since lenders need to know the authenticity to create a value.
Just to give an idea, diamonds are either loose or mounted types. The loose types are the pure stones that have not really been cut or embedded on any ring or necklace. The mounted types, on the other hand, are the ones that have already been embedded.
After the lender checks the diamonds if they are loose or mounted, they then have to be tested for their value and their authenticity. Usually, the testers would test the diamonds for the cut, their grade, their color, and other important things needed to create the value. They will be using a framework from the Rapaport Diamond Report to confirm the loan amount.
When all of the requirements have been met, then the next thing that has to be done would be the confirmation of the loan. This is done through the signing of an affidavit which will confirm that the applicant owns the collateral. It also confirms that the collateral is not being used as a collateral for other loans.
Just to give an idea, the loan that is usually offered to borrowers is around eighty percent of the value that the lender will sell the stone. This is roughly around forty percent of what the Rapaport Diamond Report gives. The amount may be a little bit low but it is definitely a pretty good option to have if one does not have that much access to funds as of the moment.
Now, the main reason as to why a lot of people take up this loan is simply because it is easy to process. Once the stone has already been tested and cleared for collateral use, then the money can be processed right away. This would usually just take around a few days to do so it is definitely possible to get the money right away if needed.
For those who cannot seem to get access to loans but would really need the money due to whatever circumstance, this is a great alternative. It may seem like a bad deal since the loan amount gotten is pretty low, but it is still higher than that of a pawn shop. That is why it is only recommended for those who need the money badly but really cannot get a loan from a bank or lending institution because of strict requirements.
Now, the great thing about this type of loan is that it is a quick loan since diamonds will be used as collateral. It is safe is a sense that if the loan is defaulted, then the lender can simply sell off the precious stone for the money. However, the testing is pretty rigid since lenders need to know the authenticity to create a value.
Just to give an idea, diamonds are either loose or mounted types. The loose types are the pure stones that have not really been cut or embedded on any ring or necklace. The mounted types, on the other hand, are the ones that have already been embedded.
After the lender checks the diamonds if they are loose or mounted, they then have to be tested for their value and their authenticity. Usually, the testers would test the diamonds for the cut, their grade, their color, and other important things needed to create the value. They will be using a framework from the Rapaport Diamond Report to confirm the loan amount.
When all of the requirements have been met, then the next thing that has to be done would be the confirmation of the loan. This is done through the signing of an affidavit which will confirm that the applicant owns the collateral. It also confirms that the collateral is not being used as a collateral for other loans.
Just to give an idea, the loan that is usually offered to borrowers is around eighty percent of the value that the lender will sell the stone. This is roughly around forty percent of what the Rapaport Diamond Report gives. The amount may be a little bit low but it is definitely a pretty good option to have if one does not have that much access to funds as of the moment.
Now, the main reason as to why a lot of people take up this loan is simply because it is easy to process. Once the stone has already been tested and cleared for collateral use, then the money can be processed right away. This would usually just take around a few days to do so it is definitely possible to get the money right away if needed.
For those who cannot seem to get access to loans but would really need the money due to whatever circumstance, this is a great alternative. It may seem like a bad deal since the loan amount gotten is pretty low, but it is still higher than that of a pawn shop. That is why it is only recommended for those who need the money badly but really cannot get a loan from a bank or lending institution because of strict requirements.
About the Author:
To apply for diamond loans Largo FL locals can rely on the following company. Get a quote today by visiting http://www.cappelloloans.com/jewlery-services.
No comments:
Post a Comment