One type of financing that is enjoying great success is pledge credit.
Many people, however, ignore what it means.
It is very simple, as the term itself says, it is a form of loan that is granted against a pledge.
The customer leaves his valuables with the bank and receives a sum of money in return.
But beware: it is not gold all that glitters, because mistakenly to what one thinks, when resorting to such a solution it should be pointed out that the sum of money disbursed is not based on the real value of the object, but will be offered 4/5 of the estimated value of the object itself.
Let’s take a practical example to better understand how credit on pledge actually works.
If the gold bracelet that you want to pawn has a value of 3,000€, you will not receive the same amount, but 2,400€, then you will have to subtract the various charges and immediately the interest to be returned will be calculated.
Therefore, instead of getting €2,400, you will get a value of €2,100.
For those who want to obtain more information, monte dei pegni rimini offers its customers all the professionalism and competence to provide everyone with the explanations they need in order to make the right choice.
Pledge credit what are the advantages you can get
First of all, it is a form of funding that everyone can access, provided they are of legal age.
The difference between a pledge credit and a common financing is that in the latter case the Bank, in order not to risk a failure to repay, requires income guarantees such as a pay slip, with this solution instead (pledge credit), the problem does not exist because the precious asset will be committed and in case of failure to return the agreed amount of money, the Institute will resell the object.
There are several companies that offer customers the possibility to apply for a loan through the pledge credit formula.
Depending on the credit institution chosen, the amount of the value will vary.
The procedure with which everything is done is very simple and fast.
All you need to do is provide identification documents, such as ID card and tax code, and you’re done.
At the time of the pledge is issued a policy with the date of redemption of the asset and the accrued interest to be paid.
Generally the duration of the contract is 6 months but can be renewed if the customer does not have the opportunity to pay.
Obviously, as with all things, there are also disadvantages.
Since it is a pledge based on the value of an object, if the customer does not have a valuable asset the credit cannot be disbursed or a very low value will be established which, by adding the interest and all charges, this form of financing will no longer be advantageous.
But for those who urgently need liquidity and have no other means available, then pledge credit is a good alternative.