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.
The first thing the lenders would do in appraising would be to check if the diamonds are mounted or loose. Loose are the pure stones have have not been cut to fit jewelry yet while the mounted ones are cut to be embedded already. More often than not, the loose ones have a higher value if lenders are discussing diamonds alone.
Now, the next thing that the lenders will do will be to test the diamonds for their color, their cut, and other grading criteria so that they can come up with a value. They would usually use a thermal tester to check the inside so that they can fully appraise it. From there, they would also seek confirmation from the Rapaport Diamond Report for the market price.
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.
Generally, the loan would be something of eighty percent of the appraised value of the stone so that the lenders can have room to sell it. The Rapaport Diamond Report would have a higher amount but it is not usually followed since the amount that is given to the borrower will be something like forty percent of the report amount. That is good enough if one really needs money.
As for the processing time, one will expect the loan to be processed in a few days or a week depending on the lender. As long as one gives the diamonds and they have been approved, the money can be given out already. Since it is such a quick loan, a lot of people opt to avail of it, especially if they need money right away for their expenses.
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.
The first thing the lenders would do in appraising would be to check if the diamonds are mounted or loose. Loose are the pure stones have have not been cut to fit jewelry yet while the mounted ones are cut to be embedded already. More often than not, the loose ones have a higher value if lenders are discussing diamonds alone.
Now, the next thing that the lenders will do will be to test the diamonds for their color, their cut, and other grading criteria so that they can come up with a value. They would usually use a thermal tester to check the inside so that they can fully appraise it. From there, they would also seek confirmation from the Rapaport Diamond Report for the market price.
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.
Generally, the loan would be something of eighty percent of the appraised value of the stone so that the lenders can have room to sell it. The Rapaport Diamond Report would have a higher amount but it is not usually followed since the amount that is given to the borrower will be something like forty percent of the report amount. That is good enough if one really needs money.
As for the processing time, one will expect the loan to be processed in a few days or a week depending on the lender. As long as one gives the diamonds and they have been approved, the money can be given out already. Since it is such a quick loan, a lot of people opt to avail of it, especially if they need money right away for their expenses.
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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