Quite often, the word “pawnshop” is associated with a very difficult financial situation. Because there is nothing more terrifying than having to hand over your laptop, antique furniture or family jewelry that has been passed down to descendants of your kind for decades.
However, if you follow all the rules set by the pawn shop, then you can establish a normal mutually beneficial relationship with him.
The main difference between a bank and a pawnshop is that the latter will never require you to have a registration, a payroll and a positive credit history. This is the main advantage of any pawn shop. The borrower only needs to provide some valuable collateral, which can be realized very quickly if the debt is not repaid in a timely manner. Documents required to obtain a loan – code and passport.
Another huge “plus” pawnshops – there very quickly draw up documents and hand out cash on credit. The decision to grant a loan is made directly on the spot. The pawnshop employee does not need to consult or seek permission from senior management and ask for information about the borrower’s identity with the credit bureau.
The decision and the amount of the loan are announced immediately. However, the pawnshop is taking a serious risk by issuing loans as a security, as a result, the loan rate is high there, and the pawnshop crediting period does not exceed 2 months.
What do they accept as collateral in Ukrainian pawnshops?
The most popular and most often seen as a pledge are articles and bars of gold, silver jewelry and silverware.
Gold. Almost all pawnshops accept gold as collateral. Every piece of jewelry is a piece of metal, and it is more of a luxury than a thing that you cannot do without in everyday life. Moreover, it is the pledge in the form of gold that gives you the opportunity to get the maximum loan.
Electronics and Technology. This mortgage is in second place by popularity. Most online pawnshops in Ukraine are easy to accept as collateral, equipment and electronics, so it is very easy to secure money on their pledge.
A personal car. In recent years, car pawnshops have been increasingly opened in Ukraine where the borrower can obtain credit by leaving his car as collateral. Only the owner of the vehicle can get money at the pawn shop. Most often, the car is transferred to the pawnshop and is stored in the parking lot, for which the borrower must pay an additional 300 UAH / month.
In some pawn shops you can take out a loan secured by a car with the right to use it. Such a loan is issued within a maximum of 2 hours – if there are no questions about the technical condition of the vehicle and all necessary documents. The loan rate and its amount will depend directly on the class of the car, the year of its issue and the market value.
Pawnshop loan secured by real estate
Today, it is still difficult to find a pawn shop in Ukraine that will be able to issue a loan secured by real estate. It is quite difficult to issue such a loan, as this will require a certain amount of additional action. The pawnshop and the borrower must conclude a special agreement.
Then the data must be entered in the state register of mortgaged real estate. If the real estate loan is not fully repaid, it cannot act as collateral. Another nuance of such a loan – the property owner must insure it and provide the pawnshop documents that can confirm it.