How You Can Get A Loan Against Your Jewellery

 

Jewellery is valuable, but depending on the metal, it may not be worth as much as you think. A loan against your jewellery can be a way to get money quickly and help you out of a tight spot.

 

Size Up the Loaner

As a rule of thumb, you should size up potential loan providers and discuss your plans with your partner. Make sure you tell the lender what you plan to do with the jewellery in order to explain the risk involved.

 

Some lenders may not lend against jewellery. If this is the case, you should shop around and find a lender with a good reputation and suitable terms.

 

Understand the Risks and Benefits

The risk is that you may not get your jewellery back. If you are using the loan to buy another expensive item or you can’t afford to pay off the loan, the bank may be able to sell your jewellery, which could lose you more money.

 

On the flip side, the loan is cheaper and faster than buying jewellery, plus you are not handing the jewellery back to the bank to start with.

 

Getting a Loan Against Your Jewellery

The first step is finding a lender who can get you a loan on jewellery. You can do this by talking to your bank or financial adviser.

 

If you’re worried about the safety of lending against your jewellery, there are some steps you can take to mitigate your risk. Check out our blog on how to protect your jewellery if you’re worried about security.

 

Once you have found a lender, it’s important to be clear about the lender’s policies and payment terms.

 

The primary rule is that you’re not going to get paid back until you sell the jewellery. This means you have to sell it soon, or at a high enough price.

 

Conclusion

It’s easy to think that you don’t have to get a loan against your jewellery to get quick cash, but it can be a good alternative to selling your valuables.

 

Before you do it, it’s important to understand all the legal implications of borrowing against jewellery.