When a personal loan is requested, any bank or financial institution will ask the consumer for some economic guarantees , such as the pay slip, the employment contract and the absence of reports as a bad payer, in order to minimize the risk of insolvency on the part of the debtor. For those who do not have a fixed monthly income, or for those who in the past have had difficulty repaying a loan, obtaining a loan can become quite complicated, but in cases like this a possible solution is the request for a loan on pledge .
Desired loan very quickly
With this form of financing, the consumer can access the desired loan very quickly, delivering a valuable item to the lender in exchange for the money he needs, without having to present further guarantees and without the need for an administrative inquiry or balance sheet by the provider. In addition to the pledge, an identity document and the tax code are sufficient. The bank or finance company issues the consumer with a bearer policy , which shows the date of the redemption and the interest rate .
To get back the property that has been left as a pledge, the debtor will have to reimburse the credit institution the sum received plus the agreed interest . For this reason the amount of the loan is normally lower than the estimated value of the object pledged (up to a maximum of 4/5 of the estimated value for the valuables and up to 2/3 of the value for the other assets). The repayment plan is established in the same way as a normal personal loan. In case of failure to repay the loan, the bank has the right to sell the pledge by auction, but it is estimated that this occurs only in 5% of cases.
The amount and duration of the loan therefore depend on the value of the asset committed, which is estimated by an expert of the bank or of the financial company that provides the credit. These are generally not high sums (the average amount for loans on pledge is € 700 ) and the duration of the loan can vary from a minimum of 3 months up to a maximum of one year. This period can be renewed one or more times according to the Credit Institute’s policies, and it is also possible to pay off the debt in advance, saving on the cost of interest. Usually objects are accepted as a pledge whose value is easily quotable, such as precious objects (gold, jewelery, precious stones, watches, etc.), but some credit institutions also accept goods such as works of art and antiques .
In the absence of the guarantees generally required for a personal loan
It is possible to obtain higher amounts than those described above, presenting a property as a pledge. Also in this case the bank or the financial company that grants the loan does not require additional guarantees, but it will be sufficient to present the property ownership certificate . By mortgaging a house it will therefore be possible to obtain even very high sums, and with greater freedom to choose the duration of the loan, fixing the amount of the installment in order to repay it more easily.
The loan on pledge can be requested at all banks of the national circuit that provide this type of service, such as Topcredit , Ibo and CSO or at authorized financial intermediaries , such as pawnbroking agencies.