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 diamonds have been tested and approved, then an affidavit has to be signed. Basically, this will state that the applicant that brought the diamonds completely owns all of them. It also signifies that he or she is not currently using it as collateral for other loan firms.
Just to give an idea, the loan that is usually offered to borrowers is around eighty percent of the value that the lender will sell the stone. This is roughly around forty percent of what the Rapaport Diamond Report gives. The amount may be a little bit low but it is definitely a pretty good option to have if one does not have that much access to funds as of the moment.
Now, the main reason as to why a lot of people take up this loan is simply because it is easy to process. Once the stone has already been tested and cleared for collateral use, then the money can be processed right away. This would usually just take around a few days to do so it is definitely possible to get the money right away if needed.
If one is a little strapped for cash and cannot get a loan elsewhere, try this one out. Of course, one will have to have some diamonds or jewelry with the precious stones embedded one them if he or she wants to get this type of debt. The great thing about it is that it is very easy to process and has minimal 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 diamonds have been tested and approved, then an affidavit has to be signed. Basically, this will state that the applicant that brought the diamonds completely owns all of them. It also signifies that he or she is not currently using it as collateral for other loan firms.
Just to give an idea, the loan that is usually offered to borrowers is around eighty percent of the value that the lender will sell the stone. This is roughly around forty percent of what the Rapaport Diamond Report gives. The amount may be a little bit low but it is definitely a pretty good option to have if one does not have that much access to funds as of the moment.
Now, the main reason as to why a lot of people take up this loan is simply because it is easy to process. Once the stone has already been tested and cleared for collateral use, then the money can be processed right away. This would usually just take around a few days to do so it is definitely possible to get the money right away if needed.
If one is a little strapped for cash and cannot get a loan elsewhere, try this one out. Of course, one will have to have some diamonds or jewelry with the precious stones embedded one them if he or she wants to get this type of debt. The great thing about it is that it is very easy to process and has minimal requirements.
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