There is a widespread belief that loan institutions specialize only in loan institutions. Meanwhile, there are other, niche ways that are worth quoting. Under what rules do lombalerie loans work? The loan industry is increasingly dominated by companies that borrow money online. In addition, lenders with fixed branches are still very popular. And although these entities can be considered dominant and most consumers come first to mind in the context of loans, there are other, niche ways. Apart from private loans, there is also something like loans in a pawnshop. It is not a widespread, but used for years an alternative way to get urgent cash in any amount. In fact, it is an important part of the functioning of pawnshops, which are still a permanent element of the landscape of Polish cities. Let’s get acquainted with the functioning of loans at the pawnshop.
Loans in a pawnshop – how do they work?
The rules for borrowing money through the pawnshop are very easy. The institution lends the client a specified sum of money, and the banker transfers any kind of object to the collateral. It is stored for the duration of borrowing money. Its value must correspond to the amount borrowed, and the pawnshop treats it as collateral. What is worth adding, there are pawnshops, which set not only items, but also stocks or bonds.
What do you usually find in a pawnshop?
Lombardy mainly functions on the basis of buying used or sometimes new items. The same applies to loans. Many consumers, with an emphasis on those who have never used the pawnshop, may wonder what items can be pledged in it? Well, pawnshops have extremely loose criteria in this matter. You can deposit the following examples of property in them.
- Electronics and home appliances: mobile phones, laptops, tablets, e-readers, computers, DVD players, coffee makers, microwaves, game consoles, etc.
- Jewelry: rings, chains, bracelets, earrings, watches and more.
- Books, atlases, albums.
- Paintings, statues, bas-reliefs and more.
- Sports equipment: balls, bicycles, cross trainers, treadmills.
- Bikes and scooters.
It should be noted that some items must also fit into the pawnshop room. It may happen that they will be rejected for this reason. Then you should look for another valuable item in property of the same value if you want to get the amount of money originally desired.
Loans in a pawnshop – basic principles
In the context of the pawnshop, the basic principle is a reliable valuation of the item brought by the consumer. This is done by an appraiser who gives his exact value. The customer can judge whether he is satisfied and whether he wants to continue applying for a loan. Lombard is obliged to properly secure the item, keeping it for the duration of the loan. Under no circumstances may it be sold or rented to any third party before the end of the repayment deadline. The customer, in turn, is obliged to return the loan under the terms specified in the contract. This may take the form of both installments and a once-off amount. If the agreed costs have been added to the loan (commission, interest), then the liability must be returned along with these costs. In the case of delays in repayment, the client must remember that the pawnshop has the right to take over the pledged object, which may be sold and lost. In addition, the pawnshop can apply for a refund of cash, after all, an additional cost is added to it from which the institution draws its income.
What formalities must be met?
The basis for loan in a pawnshop is of course the agreement, in which case it is worth remembering the mandatory information that must be included in it.
- The contract should always be made in writing.
- The data of both parties are necessary.
- The terms of borrowing can not be missing. It is necessary to include the amount of the loan, as well as the rules, type and amount of costs charged.
- It is necessary to describe the value of the pledged item, the rules of using it by the pawnbroker and the consequences, in the case of delay in repayment or avoidance of repayment by the consumer.
- You can not forget about the date, place and signatures of both parties.
When drawing up the contract, the consumer must also present his ID card