If you are in need of cash and own valuable jewellery, you can either sell it or use it to secure an asset-based loan. If you’re having difficulty deciding which option is best for you, consider how much money you need and whether you want the jewellery back or not.
Is selling the right option for you?
Selling your valuable jewellery is a good option if you have the time (and energy) to find a buyer. Going this route will likely provide you with more money than if you use your jewellery as collateral to secure an asset-based loan.
However, the online jewellery market is saturated, so you may ultimately have to lower your price in order to make a sale.
Beware that selling your jewellery to a stranger – whether online or through classifieds – puts you at risk of being scammed, so you’ll need to be smart about how the exchange takes place.
Using your jewellery to secure an asset-based loan
If your jewellery is of sentimental value or you’re unsure about parting with it permanently, you should consider using it as collateral for an asset-based loan rather than selling it. This way, you can keep your jewellery while still accessing the funds that you need.
Using valuable jewellery to secure an asset-based loan is typically a quick and easy process, and can provide you with cash within 24 hours of application.
Although you’re not likely to get as much money as you would when selling, once the loan and interest are repaid, your jewellery will be returned to you. This means that you can always use this jewellery again as collateral for subsequent asset-based loans.
The main risk involved in using your jewellery to secure an asset-based loan is that there are unscrupulous lenders. They could charge exorbitant interest rates, high initiation fees and include hidden costs in the loan contract.
However, you can easily protect yourself by choosing a lender that complies with the maximum fees and interest rates stipulated in the National Credit Act.
Get an asset-based loan for jewellery quickly and easily with Lamna. Simply apply, arrange to bring your jewellery in for appraisal and receive your funds – typically on the same day. For more information, contact us on 086 111 2866 or complete and submit our online application form.
Client borrows R10,000 for 90 days.
Total Cost of Loan
Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.