For those who happen to have diamonds or jewelry but not enough cash, a good way to get a loan would be to use the diamonds as collateral. Yes, there are such things as diamond loans Largo FL and they involve using the jewels as a safety keep in the event that one cannot pay back the loan. Here are a few facts about this type of debt.
Now, the great thing about this type of loan is that it is a quick loan since diamonds will be used as collateral. It is safe is a sense that if the loan is defaulted, then the lender can simply sell off the precious stone for the money. However, the testing is pretty rigid since lenders need to know the authenticity to create a value.
Now, these stones are either loose or mounted meaning they are either mounted or loose. Mounted diamonds are those that are already cut and embedded in jewelry while the loose ones are the pure stones. Most lenders will only take out the mounted stones if the owner allows.
Whether they are loose or mounted, they will have to be tested for color, cut, grade and other criteria that will be required by the appraisers. Lenders would usually make use of a synthetic thermal tester in order to check its true appraised value. From there, they will usually use a guide known as the Rapaport Diamond Report to determine a loan amount.
Once the loan amount is given, then the lender will ask the borrower to sign an affidavit. The affidavit will signify that the applicant owns the diamond and it is not used for collateral in any other loan. Also, that it is not owned by someone else other than the applicant.
Just to give an idea, the loan that is usually offered to borrowers is around eighty percent of the value that the lender will sell the stone. This is roughly around forty percent of what the Rapaport Diamond Report gives. The amount may be a little bit low but it is definitely a pretty good option to have if one does not have that much access to funds as of the moment.
Now, the main reason as to why a lot of people take up this loan is simply because it is easy to process. Once the stone has already been tested and cleared for collateral use, then the money can be processed right away. This would usually just take around a few days to do so it is definitely possible to get the money right away if needed.
For those who cannot seem to get access to loans but would really need the money due to whatever circumstance, this is a great alternative. It may seem like a bad deal since the loan amount gotten is pretty low, but it is still higher than that of a pawn shop. That is why it is only recommended for those who need the money badly but really cannot get a loan from a bank or lending institution because of strict requirements.
Now, the great thing about this type of loan is that it is a quick loan since diamonds will be used as collateral. It is safe is a sense that if the loan is defaulted, then the lender can simply sell off the precious stone for the money. However, the testing is pretty rigid since lenders need to know the authenticity to create a value.
Now, these stones are either loose or mounted meaning they are either mounted or loose. Mounted diamonds are those that are already cut and embedded in jewelry while the loose ones are the pure stones. Most lenders will only take out the mounted stones if the owner allows.
Whether they are loose or mounted, they will have to be tested for color, cut, grade and other criteria that will be required by the appraisers. Lenders would usually make use of a synthetic thermal tester in order to check its true appraised value. From there, they will usually use a guide known as the Rapaport Diamond Report to determine a loan amount.
Once the loan amount is given, then the lender will ask the borrower to sign an affidavit. The affidavit will signify that the applicant owns the diamond and it is not used for collateral in any other loan. Also, that it is not owned by someone else other than the applicant.
Just to give an idea, the loan that is usually offered to borrowers is around eighty percent of the value that the lender will sell the stone. This is roughly around forty percent of what the Rapaport Diamond Report gives. The amount may be a little bit low but it is definitely a pretty good option to have if one does not have that much access to funds as of the moment.
Now, the main reason as to why a lot of people take up this loan is simply because it is easy to process. Once the stone has already been tested and cleared for collateral use, then the money can be processed right away. This would usually just take around a few days to do so it is definitely possible to get the money right away if needed.
For those who cannot seem to get access to loans but would really need the money due to whatever circumstance, this is a great alternative. It may seem like a bad deal since the loan amount gotten is pretty low, but it is still higher than that of a pawn shop. That is why it is only recommended for those who need the money badly but really cannot get a loan from a bank or lending institution because of strict requirements.
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