Pawning jewellery in Jo’burg can be a quick, discrete and reliable way of raising funds – provided you use a reputable financial services provider.
Asset-based lending has grown massively over the past decade. Today, pawning personal assets of value, like jewellery, is an accepted way of gaining fast access to funds – for both individuals and small businesses.
TIPS FOR GETTING VALUE FOR MONEY LOANS AGAINST JEWELLERY
We offer a round-up of general tips for ensuring you get the best deal when pawning jewellery in Jo-burg, or anywhere else.
ABOVE ALL, FIND A REPUTABLE LENDER
Just as you’d avoid a dodgy-looking pawnshop or alleyway in person, avoid dodgy-looking websites and offers!
We recommend opting for a loan provider that:
- is registered with the National Credit Regulator (NCR) in South Africa
- is a registered financial services provider
- has physical branches in respected business areas
- appears to have been in operation for a good few years (check for a blog with plenty of content, for example)
- has a decent website (don’t go just with an ad in the classifieds or with a site that looks unprofessional).
HAVE THE JEWELLERY APPRAISED
Before pawning jewellery, it’s worth having it appraised by a jeweller. This will give you a rough guide on what to expect (and verify whether the jewellery is of significant value).
However, don’t expect to get the full appraised value of a piece as a loan.
A loan provider will offer a loan amount that’s a percentage of the jewellery’s estimated market resale value.
The same can be said of selling jewellery. It’s rare to secure a price anywhere close to the appraisal value you get from a jeweller or insurer.
This is because the jewellery loses market value as soon as it becomes “secondhand” rather than new, and because the market for jewellery is highly competitive. Especially for pre-owned jewellery, buyers are swamped with choices!
The market value of jewellery will depend on several factors, including:
- the value and purity of the metal and any gems
- the age and condition of the piece
- its rarity and provenance
- both supply and demand for similar pieces
CHECK PRICES ONLINE
Along with – or even instead of – getting a formal appraisal, have a look online.
You can gauge the demand for pieces similar to yours, and see what kind of prices they’re attracting. Dozens of online marketplaces offer pre-owned jewellery for sale.
KEEP THE ORIGINAL BOX (IF YOU HAVE IT) AND RECEIPT
A piece that’s still in its original box, with an invoice as proof of purchase, is likely to secure the best loan offer.
It’s best to avoid any lender that doesn’t ask for proof of purchase, along with a copy of your ID and proof of address.
A lender that doesn’t require this documentation might be knowingly trading in stolen goods (and that’s not the kind of lender likely to protect your interests).
BENEFITS OF PAWNING JEWELLERY
Pawning gold, diamond or other valuable jewellery makes it possible to unlock its value, without having to sell.
This means no waiting or uncertainty. You can get the needed funds almost straight away.
And once you’ve repaid a loan, the jewellery still belongs to you. So you can pass it down to younger generations, sell it when you have time or even use it to secure another loan.
A few other advantages of pawning an asset, compared to getting a traditional loan:
- extremely fast payment (often within 24 hours)
- no need for credit checks or proof of employment
- 100% discreet; we don’t share information with credit bureaus or other third parties
- no hidden fees or early settlement penalties.
HOW AND WHERE TO PAWN JEWELLERY IN JO’BURG
To start the process, simply give us some details of the jewellery you want to pawn. We can then arrange to have it appraised at our Johannesburg branch.
We’ll make a formal loan offer.
If you’d like to proceed, we’ll take the jewellery for storage in a highly secure facility and transfer the funds to your account electronically.
Once you repay the loan, we’ll return the jewellery to you, in exactly the condition you left it.
WHY CONSIDER LAMNA?
Lamna is a registered financial services provider with branches in Cape Town, Johannesburg, Durban, Gqeberha (Port Elizabeth), Pretoria and Gaborone.
We specialise in providing quick cash loans against a wide range of assets. Our terms are favourable, with competitive interest rates, and we typically process applications within 24 hours. Lamna is registered with the NCR.
For more information about pawning jewellery in Jo’burg, contact us on 086 111 2866 or simply complete and submit our online application form.
ILLUSTRATIVE EXAMPLE
Client borrows R10,000 for 90 days.
Loan Amount | Repayment Period | Monthly Interest | Total Cost of Loan | Initiation Fee | Monthly Fee | APR |
|---|---|---|---|---|---|---|
R10 000 | 3 months | R500.00 | R2 914.50 | R1 207.50 | R569.00 | 60% |
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.