4 Things To Know About Jewelry Collateral Loans
When you buy a piece of jewelry, you purchase something you have desired for a long time. Purchasing jewelry is not just a guilty pleasure but an investment. It is said to be an investment because it can be encashed at the time of debt. The value of the precious metal and stones in your jewelry makes it eligible for you to use as an asset and acquire jewelry collateral loans . Before you make any decisions about availing a loan against your jewelry, let us understand collateral loans in brief so that you can make an informed decision. What Are Collateral Loans? When you avail of loans from a pawn shop instead of an established financial institution like a bank you need to keep an asset as collateral so that your loan is secured and safe. A pawnshop offers a loan based on an item's value, which serves as collateral. If the borrower fails to make timely payments, the pawnshop can keep its collateral and resell it to cover its losses. This is a basic concept of collateral loans