Have you ever faced a lack of funds situation? But didn’t make up your mind to get a loan on behalf of your jewelry? Do you know to lend a loan over jewelry can offer a better option than taking personal loans from banks? A jewelry loan can provide you with the money required during a crisis. It allows you to pay the whole amount with applicable interest to get your jewelry back.

A jewelry loan is usually a secured loan where the borrower, a bank or a financial institution, keeps it as a security and provides capital against it. In simple terms, it can be similar to a “mortgage loan”, where the owner keeps the property as collateral to fulfill their need for capital.

Reasons to lend your jewelry for a loan

Here are the most common reasons why people choose to lend jewelry for a loan in urgent need of cash:

• Urgent financial needs

This is one of the most significant reasons people choose to lend their jewelry in the need of cash quickly.

• Quick transaction

Another reason for choosing the jewelry loan is the speed of transactions.

• Flexibility to acquire it back

Several individuals believe that lending jewelry means selling it. However, it is just a way to get an amount on loan for a specific period using jewelry as collateral. After the completion of loan tenure, you can acquire your jewelry back from the lender.

Advantages of taking a jewelry loan

One of the most crucial benefits of taking a jewelry loan is the quick reimbursement of funds without excessive documentation or credit checks. However, other amazing benefits of a jewelry loan are given below:

 

1. Easy disbursal

As mentioned, one of the main benefits of this type of loan is its quick document processing and disbursal of funds. However, there are some other things the lender can confirm before availing of your loan. Regardless of whether the loan is secured against jewelry, the lender can verify your income, repayment capacity, or credit history.

Once you’ve completed the application with all the required documents, the loan amount will avail within a few hours or working days. It usually depends upon the terms and conditions mentioned in the agreement between you and the lender.

2. Flexible to repay

Most of the time, jewelry loan providers give borrowers a flexible option of repayment periods or types. It is very beneficial for a borrower who can’t repay a whole amount in one go. Lenders usually provide the option of EMIs (Equated Monthly Installments) or a bullet repayment. EMIs usually are a distributed amount of the entire loan amount in a few months as agreed by the borrower, for example, 3 or 6 months. But, in bullet repayment, you have to repay the entire amount at the closure of the loan tenure.

3. Less documentation

If you compare a jewelry loan with any other kind of loan, whether a personal loan, mortgage loan, etc., a jewelry loan requires very minimal documentation. You just have to provide some of your basic identity information & address proof with the collateral jewelry. It makes your loan application process very simple and comfortable.

4. Low interest

The rate of interest for jewelry loans is usually low compared to other loan types. These types of collateral loans are slightly less risky than other loans and come with a lower rate of interest. It helps the borrower to reduce the total owed amount and to pay off the loan amount within the specified time.

5. No financial information required

Good credit is not a requirement to get a jewelry loan. In a traditional loan, there is usually a requirement to submit several financial documents to show your good financial standing.

It is not just inconvenient but even time-consuming, with the risk of being rejected if you have bad credit. However, in a jewelry loan, there is no financial information required. You just have to give fine jewelry equaling the demanded amount to qualify.

Conclusion

A jewelry loan can be a great option for individuals to get funds instantly at an affordable cost. All you need to do is find a reliable and trustworthy lender who will provide the best loan offer. It includes low-interest rates, minimal documentation, and flexible repayment options. However, you should compare the interest rates and terms offered by your potential lender with those of other lenders before getting your jewelry loan.

You can choose Whitten’s Fine Jewelry to lend your premium diamonds, rings, necklaces, watches, and other jewelry items. We’ve served for over 40 years by helping members with our reliable and secure jewelry loan service.