Many of us experience situations where there are unexpected expenses and you don’t have an emergency fund like in cases of car accidents. Car crash due to accident demands a lot of expenses from medical to litigation expenses, not to mention car repair and others. While there is an obvious settlement from personal injury from which auto accident loans are derived, there are still immediate expenses that are uncalled for.
Situations like this require you to have fast cash. Pawning valuable items like your precious gems is one way to get fast cash. Yes, you can easily get cash by pawning your valuables, such as laptops, cellphones or Precious Gems. If you pay attention to the environment around where you live in the last few years, you will find many pawnshops in every corner of the street. Here are considerations to look at before heading to the nearest pawn shop near you.
How a Pawn Loan Works
Security. Since you are pawning acceptable valuable items, trust only pawnshops that had been trusted for decades. Security should be highly regarded whether in terms of the privacy of your personal data (which means it should not be shared with other parties) as well as ensuring the security of your pawned goods. Of course, you do not want to lose the goods you pawned, then make sure the credibility of the pawnshop. If you are willing to lose the item, then sell it, no need to pawn.
Note the Terms and Conditions that apply. Every financial institution, certainly requires formal requirements, namely identity cards or we are familiar with KTP. Next, of course, the goods to be mortgaged. If you are pawning gold or Precious Metals, pay attention to the letters and the physical. Likewise, if you pawn BPKB, pay attention to the letters and the physical condition of your vehicle, because it will be examined. If you are pawning electronic goods, of course, the condition of electronic goods is a concern, whether it works or not. As a non-bank financial institution, the pawnshop will not accept problem items or do not have complete paperwork.
Mortgage Fees. Each pawnshop has its own policy. A pawn system is a lease system, so when referring to a state-owned pawnshop, the pawnshop will charge a rental fee or deposit fee per 15 days, with a maturity of 120 days and can be extended. If late from maturity, of course, have a fine fee. Every time you make a pawn, then you will be charged Administrative costs. The amount of administration fee depends on the nominal you pawned. The greater the loan you take, the administrative fees charged will also increase.
Estimated Value. Each pawnshop applies an estimated value and an acceptable loan of 80% – 85% of the estimated value. For example, if you pawn the Starting Metal and the pawn place gives an estimated value of $1,000, the value of the loan that can be given to you is around $800. This term is important for you to understand, so as not to be disappointed if the loan value that you want is not reached because this is the system that applies in a Pawnshop.
How long will the goods be mortgaged? No one knows how long the item was pawned. Of course, there are separate reasons why you are mortgaging goods. So most of you know how long the item is mortgaged is yourself. What needs to be a special note for you is, because the pawnshop is practical and does not require a long time for disbursement, do not be complacent and underestimate, let alone due up to 4 months or 120 days.
Ensure that you make regular payments to decrease the amount of your loan. The amount of installments you must pay attention to, that is, a maximum of 30% of your income. What happens a lot is, you feel the maturity is still long and in the end postpone to prepare sufficient funds when due later.