According to the legislation and the Civil Code of the Russian Federation, pawnshops in Russia can accept almost all movable property as collateral. But the realities of the modern financial market show that the vast majority of pawnshops work only with gold collateral. And yet the number of remaining companies willing to lend money not only for gold is gradually growing. The types of collateral are expanding and now include household appliances, electronics, clothing, accessories, vehicles, antiques and much more. This article will discuss the main property that can be pledged to a pawnshop.
Cars and other vehicles
Appliances are a popular option for collateral in pawn shops. Loans secured by cars are provided by leasing organizations, commissions and microfinance institutions. Being an object of collateral, the car is kept in the pawnshop parking lot. Other lenders allow the borrower to use the car for the duration of the loan, providing funds secured by the title. However, the latter option of cooperation most often involves increased interest rates for the use of funds and smaller amounts of money for lending.
The estimated value of a car is determined by a specialist based on current market prices for similar models. The most important condition for the best price is:
- no serious damage to the car;
- normal technical condition of the vehicle;
- no encumbrance on the car, including an outstanding loan;
- equipment, mileage, etc.
The borrower receives from 50 to 80% of the market price of the car - the difference reimburses taxes, commissions, costs of storage and resale of the vehicle in case of non-purchase.
Ransom
Each pawnshop sets its own rules for the delivery and redemption of items. Usually the product is pledged for a month, so interest is paid for this period. When the time has come, the client can return the money and pick up his item. He also has the right to extend the contract if he pays interest.
You can buy an item not only after a month, but even earlier. Then the interest is recalculated and the overpayment will be less. You can return funds immediately or in installments. Money is given upon receipt of the item.
Pawnshop services are convenient because loans are processed very quickly. In this case, you do not need to collect documents, as is required to obtain a loan. And if you pay for the item on time, you can get it back.
Silver jewelry and accessories
Selling silver to a pawnshop at competitive prices is not an easy task, since few companies work with this metal. The reasons are obvious: silver items are often counterfeited, they are inexpensive, and if they are not redeemed, they will have to be sold as scrap.
Before pledging silver, you should decide whether you plan to buy it back in the future. If yes, a corresponding agreement is drawn up indicating:
- term of use of the loan;
- redemption dates;
- interest rate for the use of credit funds.
After the end of the pledge period, in case of non-repurchase, the item becomes the property of the establishment and is sold at the company’s prices. If the redemption of silver products is not initially planned, the borrower receives a certain amount of money from the pawnshop without further obligations.
Electronics and household appliances
Blenders, yogurt makers, meat grinders, toasters and other small household appliances can also be a way to borrow money. The pawnshop value is formed based on prices on specialized online message boards. It is mandatory to check the operation and configuration of household appliances, the condition of the battery and power cable. Household appliances with damaged windings, burnt marks, etc. are not allowed. Household appliances that are in demand as pawns include coffee makers, plasma TVs, cameras, steamers and much more.
More often than household appliances, mobile phones are handed over to pawn shops. But you shouldn’t count on a loan close to the purchase price, even if the device is brand new. Appraisers deliberately reduce the price of electronic and household appliances, explaining this by the fact that the collateral may lie for many weeks and, if not redeemed, will lose its original value, because the devices become obsolete very quickly.
Electronic equipment must be equipped with a charger. This allows the appraiser to:
- do not doubt the legality of owning a smartphone;
- carry out a multilateral check of the phone - the operation of all slots, camera, battery, microphone, access points, etc.;
- exclude illiquid stock in the warehouse.
Computers, laptops and tablets are subject to the same check.
What a pawnshop will not accept
Some pawnshop clients mistakenly believe that if a financial institution is universal in terms of the valuables it sells, they can take any unnecessary item to it and get money. This is far from true. Pawnshops do not accept a whole list of valuables for various reasons. So, the list of things that cannot become collateral for a loan includes:
- parts of electronics, tools or household appliances, the serviceability of which cannot be verified on site;
- electronics (tablets, smartphones) with a non-standard charger connector - most often these are products of Chinese brands;
- electronics without a charger in the off state;
- tools without appropriate cables for connection to the network;
- used personal hygiene equipment - razors, epilators, stylers, etc.;
- obsolete (but not antique) equipment, electronics or tools due to reduced demand (landline telephones, faxes, matrix type printers, etc.);
- highly specialized medical equipment that is not sold in pharmacies;
- weapons - cold steel, firearms, pneumatic, as well as electric shock;
- an alloy of precious metals of different samples - it is extremely difficult to accurately determine the sample, and, therefore, the value;
- animals and birds, even the most exotic and expensive ones;
- electronics or equipment with significant flaws in appearance or functionality.
Why are there so many conditions? The fact is that one of the main sources of income for a pawnshop, if the borrower has not repaid the debt, is the sale of the pledged property. In other words, the financial institution evaluates the item brought from the perspective of how quickly and easily it can be sold.
Antiques
Antiques - paintings, porcelain and cutlery - are quite difficult to evaluate correctly. You can pledge them only in big cities to companies that have relevant experts on their staff. In the absence of specialists, establishments prefer not to take such property, since there is a risk of seriously missing its assessment and not finding a new owner if the goods are not purchased.
Silver
The second most popular category of items in pawn shops is jewelry and household utensils made of silver. Jewelry, cutlery, watches and other items are accepted.
Silver has its own hallmarks:
- 800 - the most inexpensive, but durable,
- 925 - used for jewelry,
- 999 - pure silver.
The cost of a gram of silver in a pawnshop is estimated at a maximum of 25-30 rubles, while for a gram of gold you can get up to 2.5 thousand. If you need a loan for a large amount, you will need to hand over a lot of silver.
How to pawn
Handing over household appliances or other supplies is a fairly quick procedure. After a complete inspection of the goods, the appraiser indicates the approximate amount of the loan and, with the consent of the second party, a contract is concluded.
The following points need to be taken into account:
- the specialist has the right to refuse a potential client without giving reasons;
- the collateral must be returned to the client in full and in the condition at the time of conclusion of the contract;
- the resolution of all controversial situations not reflected in the contract is made on the basis of current legislation.
When pledging equipment and other things, the borrower must be of age and have a passport.
How much to pay
When deciding to hand over a car to a pawnshop, you should take into account that for vehicles the collateral interest rate is minimal due to the large amounts. Next in descending order is gold, the value of which is subject to fluctuations. Over time, the metal becomes more expensive, so the expert does not take much risk, even if the client does not want to buy back the collateral.
Loan interest rates are higher for household and electronic goods, which tend to become obsolete quickly. The borrower may not want to pay interest or repurchase the property for a long time. The same situation is typical for other pledged goods. If you do not initially plan to pick up the product, it is better to immediately take it to a thrift store or a thrift store. By saving on costs, such institutions offer the best price.
The terms for the redemption of collateral are specified in the contract. In addition to this period, the borrower has an additional grace month, most often with an increased interest rate. If you refuse to repurchase the goods, you should not be afraid of fines or sanctions: the loan is fully repaid when the pawnshop company takes ownership of the collateral from the client.
An alternative to a pawnshop and comparison with other borrowing methods
The main advantage of a pawnshop compared to other lending methods is that cash will be issued regardless of the borrower’s credit history. In addition to the passport, the client will not be required to provide any other documents or receipts.
The main danger of this method of borrowing is the loss of personal value. In cases where there were delays in repurchase, payment of interest, and even when the collateral property was previously sold, the client will not be denied a new collateral.
Credit card
If you need borrowed funds constantly, but manage to pay them off on time, then it makes sense to open a credit card. The Brobank website offers a wide selection of credit cards with different lending conditions. Some are issued with a bad credit history, others without income statements, and others with a grace period of up to 100 days, for which you will not have to pay anything.
Tinkoff Platinum credit card
| Credit. limit | RUB 700,000 |
| Proc. bid | From 12% |
| No interest | Up to 12 months |
| Price | From 0 rub. |
| Cashback | Up to 30% |
| Solution | 2 minutes. |
Credit card 100 days without interest
| Credit. limit | RUB 500,000 |
| Proc. bid | From 11.99% |
| No interest | Up to 100 days |
| Price | From 0 rub. |
| Cashback | Up to 33% |
| Solution | 2 minutes. |
MTS Cashback credit card
| Credit. limit | 1,000,000RUR |
| Proc. bid | From 11.9% |
| No interest | Up to 111 days |
| Price | From 0 rub. |
| Cashback | 1-25% |
| Solution | 2 minutes. |
Credit "Smart Card" Gazprombank
| Credit. limit | RUB 600,000 |
| Proc. bid | From 25.9% |
| No interest | 60 days |
| Price | From 0 rub. |
| Cashback | 1-10% |
| Solution | 2 minutes. |
Credit card Opencard
| Credit. limit | RUB 500,000 |
| Proc. bid | From 13.9% |
| No interest | 55 days |
| Price | 0 rub. |
| Cashback | Up to 2% |
| Solution | From 15 min. |
Cash lending
You can also select a suitable consumer lending program on the Brobank portal. In this way, you can improve your financial situation over a longer period and with lower interest rates than are offered in pawn shops.
Cash loan Tinkoff Bank
| Max. sum | RUR 2,000,000 |
| Bid | From 8.9% |
| Credit term | Up to 3 years |
| Min. sum | 50,000 rub. |
| Age | From 18 years old |
| Solution | 2 minutes |
Cash loan at Promsvyazbank
| Max. sum | RUB 5,000,000 |
| Bid | From 5.5% |
| Credit term | 1-7 years |
| Min. sum | 50,000 rub. |
| Age | 23-65 years old |
| Solution | 5 minutes |
Cash loan Home Credit Bank
| Max. sum | RUR 3,000,000 |
| Bid | 5,9% |
| Credit term | Up to 7 years |
| Min. sum | 10,000 rub. |
| Age | 18-70 years |
| Solution | In 1 min. |
Post Bank cash loan
| Max. sum | 6,000,000 RUR |
| Bid | From 5.9% |
| Credit term | Up to 7 years |
| Min. sum | 50,000 rub. |
| Age | From 18 years old |
| Solution | 1 min. |
Cash loan Alfa-Bank
| Max. sum | RUB 5,000,000 |
| Bid | From 5.5% |
| Credit term | Up to 5 years |
| Min. sum | 50,000 rub. |
| Age | From 21 years old |
| Solution | 2 minutes. |
about the author
Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]
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