Loan secured by gold: conditions, requirements for gold, procedure and loan agreement

Basic Reception Items

Despite the fact that this type of business dates back more than a century, the principles by which institutions operate remain unchanged. Each organization has a main specialization - issuing money secured by valuable items. Of course, there is another service that allows you to sell certain valuables. Areas of activity are varied:

1. Jewelry pawn shops. Most often they work with jewelry, antiques and various household items;
2. Organizations dealing only with telephones and household appliances;
3. Car pawnshops. Here everything becomes clear from the name itself.

There are other types, for example, those dealing with other types of vehicles and real estate.

Where can I get a loan secured by gold?

If you urgently need money, but you don’t want to borrow from friends or fill out a lot of paperwork, contact a pawnshop. These institutions provide loans on the condition that you provide an item of value as collateral.

Pawnshops are completely legal - their activities are regulated by Federal Law-196 “On Pawnshops”, and they issue small loans secured by property in 15 minutes.

Gold products are most welcome as collateral - the precious metal has universal global value, is not subject to corrosion, is used in many fields of activity, and its reserves are limited.

If you have chosen a gold product as collateral, it is better to opt for a pawnshop rather than a microfinance organization. MFOs, in principle, are not inclined to lend against anything as collateral, and gold, in general, would require an authentication procedure, which is unacceptable for financial institutions.

Modern pawnshops are also convenient because many of them provide services through their website. You fill out a form, to which you attach a photo of the product, write down the characteristics known to you (brand, sample, weight, condition, availability of documents) and send it for inspection. Specialists review the information and send you an email indicating the pre-approved loan amount.

Operating principle of the organization

Organizations issue a loan only when a person pledges some valuable item. After a certain period of time specified in the contract, the client must redeem the surrendered item. If this does not happen, then the item becomes the property of the organization.

People who want to use the services need to remember that loans issued by pawnshops are very expensive. You can use the services of these organizations only in cases where a problem has arisen in your life, the solution of which requires a large amount of money received in a short period.

How to get a loan secured by gold?

Getting a loan from a pawnshop is one of the fastest procedures. It’s convenient that the pawnshop is not interested in your credit history, permanent registration or criminal record. The main thing is the availability of a liquid product.

You will quickly go through all the stages:

1

Find the right gold jewelry. It is better if it is a product without stones: a chain, earrings, a gold watch strap. Why? If everything is quite transparent with the valuation of gold, then with the valuation of a stone you cannot be completely sure that the amount will be named correctly.

2

Find a pawn shop. There are several search methods. Ask for advice on your city's forum, ask your friends, Google, or just go to the city center. As a rule, pawnshops “settle” in places with a busy flow of people. It is safer to contact an institution that has existed for a long time and also has its own website on the Internet - with a price list and details.

3

Gather your documents. To get a loan from a pawnshop, you only need one document - your civil passport. Don't forget to take a gold item when you go to get a loan.

4

An appraiser at a pawnshop will check the product using an express examination. It is done in several ways, but most often it is tested with a reagent and a magnet. In the first case, a small scratch is made with a diamond file in an inconspicuous place on the product. Thus, deep layers of the alloy are exposed and some acidic reagent is buried, after which the chemical reaction makes it possible to judge the authenticity of the product. The appraiser can then further check to see if the gold is magnetic - this will indicate iron content in the item, which should not be the case.

5

If the inspection was successful, the appraiser will offer you an amount that is approximately 20% less than the price for which the product was appraised. You can't argue - either agree or go to another pawnshop. The verification procedure does not obligate you to agree to the proposed conditions.

6

If you agree, sign the loan agreement in two copies. One remains for you.

7

The appraiser will immediately give you the agreed amount in cash and take the gold item into storage until you redeem it. To redeem the item, you need to bring to the pawnshop the entire amount that was given to you, plus accrued interest for the pawnshop’s services. If you do not do this before the end of the period specified in the contract, the pawnshop will sell your product.

Interest and its calculation

At what interest rate the pawnshop gives money is a very important factor that you need to pay attention to, because everyone has their own rate. The so-called “deposit ticket” was invented to know exactly how much money was due and many other details, including the following:

• Details of the establishment;
• Client data;
• Detailed description of the item;
• The amount at which the item was valued;
• The amount received by the borrower;
• Date of receipt and date of obligatory payment of the loan.

Of course, thanks to this paper, you won’t be able to forget about the interest rate at which the pawnshop gives money.

It is impossible to say for sure whether there is a certain interest charged in a pawn shop per day. Each organization is responsible for what the pawnshop interest will be per day, based on the individual rules of the agreement.

If we talk about the average percentage of collateral in a pawnshop, then it ranges from 0.3% per day or more. Some organizations are ready to provide their services only at a higher percentage of collateral in a pawnshop per day, which can be 0.5%, 0.8% or more.

Gold requirements

Large pawn shops issue loans secured by jewelry with a wide range of hallmarks - from 375 to 999. Smaller market participants do not take risks and accept strictly defined hallmarks - most often these are the popular 583 and 585 hallmarks.

Using a magnifying glass, examine the manufacturer's mark on the gold item that you are going to take to the pawnshop. It must be readable. The higher the sample, the more you will get per gram of product.

Everyone knows that gold jewelry is not made from pure gold, since the metal in its pure form is too soft for jewelry. Therefore, silver, copper, palladium, cadmium, and zinc can be added to gold. The hallmark of your item shows the percentage of pure gold it contains.

For example, if the mark on a product is 585, this means that per 1000 grams of the product it contains 585 grams of gold and 415 grams of alloy.

There is one more characteristic that is usually misinterpreted - the color of jewelry gold. There is a myth that the yellower the product, the more gold there is. This is an incorrect statement. A different color only indicates the predominance of one of the metals in the alloy (for example, a reddish tint indicates copper), but this does not in any way affect the amount of pure gold in it.

Each pawnshop has its own list of items that it does not accept as collateral. These can be industrial semi-finished products, gold nuggets and refining, gold waste, dentures, orders and medals.

Important! The minimum weight of the product must exceed 0.1 grams.

What percentage should you expect?

There are several options for what percentage a pawnshop may have when property is re-pledged. Of course, what percentage a particular person will have in a pawn shop often depends on his credit history. The most common system is the following:

• 15 days (loan increases by 3%);
• 30 days (loan increases by 5%);
• 45 days (the volume of collateral increases by 10%);
• 60 days (the volume of collateral increases by 15%);
• 120 days (the volume of collateral increases by 25%);

Regardless of the loan amount, the interest rate can range from 0% per day.

When a client contacts a pawnshop, he is usually offered the most favorable conditions, including a certain accrual of interest at the pawnshop. Responsible people are trusted much more, which is why they offer special options where the accrual of interest at the pawnshop will be minimal.

Payment of the money

Done after the conclusion of the contract. The fact of issuance of funds, with the obligation to return, is noted in the pledge ticket. This is a document containing certain information:

• details of the credit institution;
• personal data of the consumer;
• a detailed inventory of the collateral;
• the amount issued on the basis of the assessment;
• date of issue and deadline for refund.

Such a document is a kind of insurance, with the help of which you can avoid unpunished failure to fulfill obligations.

If you need a pawnshop with a low interest rate, we are waiting for you in Charoit.

What should you consider?

Before you start drawing up an agreement, you need to familiarize yourself with how to calculate the expected interest, because it is beneficial for a pawnshop if the rate is as high as possible. The client would prefer that the rate be an order of magnitude lower.

The calculation is very simple:

• For example, a person handed over a gold ring whose weight does not exceed 3 grams. According to the pawnshop's estimate, the amount was three thousand rubles;
• The interest rate, for example, is 0.55% per day;
• Registration is carried out for a period of 15 days;
• Then, it turns out, the person will pay 16.5 rubles per day, and after the specified period the ransom amount will reach 3247 rubles 50 kopecks.

Total: three thousand is the loan amount, and 247 rubles 50 kopecks is the accrued interest.

Now, based on this example, you can easily understand how to calculate the expected interest; for a pawnshop this is very profitable and convenient.

Knowing how interest is calculated in a pawnshop, you can easily calculate the entire amount that will be received at the end of the time period. Thanks to this knowledge, you can once again determine for yourself whether the game is worth the candle and whether it is necessary to obtain a loan.

It happens that a life situation requires an immediate investment of money, sometimes it even concerns matters of life and death. Then how interest is calculated in a pawnshop will be of little interest to anyone. Although in any case, the most correct decision would be to contact an organization that offers a minimum percentage.

Do I need to draw up a loan agreement when receiving money from a pawnshop?

The agreement not only stipulates all the conditions between the pawnshop lender and you, it also legally protects your rights. If, when receiving a loan from a pawnshop, you are not offered to sign an agreement, we do not recommend dealing with this organization at all. There is a high probability that these are scammers.

However, the mere existence of an agreement does not guarantee the protection of your rights. Review the contract. It must include the following information:

• Characteristics of the pledged product (name, weight, purity, visual characteristics).
• For how long did you receive the loan?
• What percentage will be charged?
• Under what conditions can you return your product?
• Is there a minimum loan repayment period? For example, a condition may be stated: you must pay interest to the pawnshop for at least 15 days, even if you buy the product the very next day after signing the contract.

The pledge agreement, according to Article 339 of the Civil Code of the Russian Federation, is drawn up in simple written form - its certification by a notary is not required. By the way, the receipt also has legal force. But the terms of the loan are not presented in such detail.

Client Responsibilities

The first and most important rule that the client needs to know about is providing passport data. No other documents may be used. Based on the assessment of the item, the amount the client can expect will be determined.

After the client gives his consent to conclude the transaction, an agreement will be drawn up and a deposit ticket will be issued. As for the moment of determining the amount for return, the interest in the pawnshop is calculated on an annual basis. How long can the bail be? The established framework is from 2 days to a year.

It is based on the amount offered for the item, the period for which the money is issued, that the interest in the pawnshop depends, whether it will be paid for a year or for a shorter period - everything is discussed at the conclusion of the transaction. Everything can be calculated quite simply, so there should not be any difficulties.

What items does the pawnshop accept?

Let's consider what can be left as collateral in order to receive funds. More often they accept items of value in the following categories:

• Jewelry – any items made from precious metals, as well as antiques.
• Household appliances - absolutely anything, from large ones in the form of refrigerators or washing machines, to toasters and hair dryers, as well as computers, phones and other electronics.
• Transport – not only cars, but also motorcycles and boats.

Such companies accept everything that has at least some demand from people and can be sold if you do not fulfill your debt obligations.

What happens to collateral if it is not applied for?

The pawnshop provides the opportunity to resell jewelry that its owners did not ask for. It is considered correct to immediately warn the organization’s employees that there is no opportunity to buy the item. When leaving the pawnshop, you need to prepare for the subsequent actions that will be performed with the decoration:

• sale in jewelry stores: if the item is well preserved, after cleaning and polishing it can be sold, such stores belong to pawnshop owners, it is customary to sell items there (and quite expensively, as for used items) that were not returned to the owner, but the price is still lower compared to new jewelry;
• auctions for branded items: such events and organizations, operating on an ongoing basis, are also most often the result of the activities of pawnshops, they allow you to sell branded jewelry at a high price; there are also more famous organizations that conduct such auctions;
• sale of scrap to factories: products that have lost their attractiveness, are broken, but contain a significant proportion of gold, can acquire a second life; scrap of precious metals is resold to jewelry factories for melting down.

The operating principle of pawnshops. Difference from buying

It is recommended to hand over items to a pawnshop for a certain period of time. This could be 1 week or a month. If the client does not plan to return the jewelry, you must immediately draw up an agreement for a minimum period. You must have an identification document with you. The transaction takes place immediately on the spot without transfer to other days.

Selling gold to a pawnshop is different from selling this product for purchase. The difference is the ability to return your item. Buying eliminates the possibility of such a function. The surrendered precious metal goes to the disposal of the owner of this organization.

In addition, pawnshops and purchasers have different requirements for products at the acceptance stage.

Pawnshops and jewelry companies: the gold cycle

If a client plans to pawn gold without redeeming it, his jewelry or other items will become part of a long chain of turning scrap into new jewelry. Today, the number of such things (in the homes of many people and among the assortment of products in stores) has increased so much that demand no longer generates supply, it’s the other way around. Main stages of the cycle:

• scrap ends up in jewelry factories;
• from there new products are sent to stores (Sunlight, Sokolov, etc.);
• the end point is the consumer.

Table: pawn shops in your city

Today, literally everywhere there are organizations that accept collateral at an affordable price. It is necessary to choose the appropriate one so that there are no negative consequences in the form of loss of gold, etc. Below are some of the organizations in the Russian Federation:

Well-known chain pawn shops

The popularity of large organizations is off the charts. Many choose them because of their fame, which can be a guarantee of the integrity of the owners and employees. Among the most famous network pawnshops are:

• "Your pawnshop";
• Mosgorlombard;
• "Lender";
• "Jewelry of the Urals".