Pawnshop loans – what are they about?

Good Finance is an institution that can be an alternative to loan companies. You can receive additional cash against valuable things. That’s not all, as pawnshops also sell utility items that can be purchased at a lower price than the market price. What are Good Finance loans and are they worth using?

Pawnshop loans – what is this?

Pawnshop loans - what is this?

By using Good Finance loans, you can count on minimal formalities and immediate cash withdrawals. This form of financing has a short repayment term, which is usually 7.14 or 30 days. The money is given as collateral, which means that in order to receive it, you must exchange a valuable item with the pawnbroker.

On this basis, the maximum loan amount, as well as interest, commission and additional costs, are determined. All these issues are governed by the regulations of a given pawnshop, therefore the rates, repayment period and items taken against collateral may be different in each institution.

Rules for a Good Finance loan

The whole loan process is very simple and does not require any complicated formalities from the borrower. When submitting an item against the pledge, it is valued and the maximum loan amount is determined on this basis. The borrower signs a contract with the pawnshop, in which he undertakes to repay within a specified period. After its expiry, the pawnshop has the right to sell the exhibited item, if it was not bought by the debtor.

How much can you get?

How much can you get?

It all depends on the pawnbroker policy and the value of the pledged item. Typically, pawnshops offer a maximum of 30% of the item’s valued value. This is collateral in case the borrower defaults, so the pawnshop can sell the pledge for profit. The basic amount should also add interest, which may be a maximum of 10%.

It is worth remembering that if the repayment date is approaching and the situation does not allow for paying the debt, you can apply for a loan extension. However, you have to reckon with additional interest accrued to the basic amount.

What can you pawn at the pawnshop?

Practically any valuable item can be pawned at the pawnshop. These include:

  • jewelry,
  • home appliances and electronics
  • electronics,
  • securities,
  • works of art,
  • sports equipment.

Some pawnshops also offer car loans. Then the appraiser deals with his valuation. In addition, they also often buy gold, but in this case, the rates may be less favorable than at the jewelers.

Unsecured loans

Pawnshops require collateral in the form of a valuable item in the event of default. You can apply for a loan without a pledge from non-bank companies where you can also get money quickly. This is a much more beneficial solution because you can apply for much higher amounts spread over a longer repayment period.