Collateral lending is a type of lending that uses collateral as the basis of the loan as a guarantee. These types of loans are offered by pawn shops and use personal items as collateral for the loan.
Collateral lending – is it for me?
Collateral lending is a popular form of lending provided by pawn shops as it is a quick and easy form of lending that requires minimal paperwork and for those taking out the loan it doesn’t require any credit checks.
Collateral lending uses a personal item as the basis for the loan and the lender stores the item safely until the loan is repaid. If the loan is not completely repaid the lender can take ownership of the item used as collateral.
Traditional collateral-based loans are often associated with mortgages or loans secured against a home which many financial institutions offer. Pawn shops offer an alternative using a variety of small assets as collateral.
What items are acceptable for collateral lending?
Pawn shop collateral lending has a broad range of acceptable items as they deal in such a variety of goods in their business and have the experience to handle so many goods. You can use jewelry including watches, rings, earrings, bracelets, necklaces, chains, charms, anklets and brooches.
You can also use electronic goods such as cell phones, tablets, laptops, computers, consoles, TVs and other devices that are in good working condition.
Other acceptable items can include clothing and accessories such as designer goods and branded items like handbags, eyewear, hats, belts, shoes and trainers.
How much does collateral lending offer?
GEM Pawnbrokers as a collateral lender offer loans up to $1 million but the amount you can borrow is dependent on the collateral provided for the loan. You can find out how much you can borrow by visiting one of our stores with your collateral item so that we can appraise it. We will give you a fair and competitive loan offer for your item.
Collateral lending is based on terms of a minimum of 60 days which will be agreed when you take out the loan. The loan however can be repaid in full early without any additional charges and you can get your collateral item back sooner.
Who to choose as your collateral lender?
GEM Pawnbrokers is a trusted and long-established pawnbroker in the New York City area as they have been trading for over 75 years. We provide some of the best collateral lending rates in the United States and have 24 conveniently located stores throughout the New York City area.
We are still going strong after 75 years because we provide a high-quality service that people trust and come back to. So you can also trust us to provide you with excellent service and to care for your item throughout the loan term. Visit one of our stores to find out what you can borrow through collateral lending.