lundi 20 mai 2019

What Diamond Loans Largo FL

By Debra Rogers


Cash loans are pretty hard to get because they require a good credit score, records of non payment and other requirements. Now, if one needs to get cash really fast, then he or she cannot count on these loans since they do not have assurance and they take long to process. If one happens to have some diamonds or jewelries in his or her hand, then the next best option are diamond loans Largo FL.

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.

Now, these stones are either loose or mounted meaning they are either mounted or loose. Mounted diamonds are those that are already cut and embedded in jewelry while the loose ones are the pure stones. Most lenders will only take out the mounted stones if the owner allows.

After the lender checks the diamonds if they are loose or mounted, they then have to be tested for their value and their authenticity. Usually, the testers would test the diamonds for the cut, their grade, their color, and other important things needed to create the value. They will be using a framework from the Rapaport Diamond Report to confirm the loan amount.

Once the loan amount is given, then the lender will ask the borrower to sign an affidavit. The affidavit will signify that the applicant owns the diamond and it is not used for collateral in any other loan. Also, that it is not owned by someone else other than the applicant.

For the amount that will be given to the borrower, expect around eighty percent of the appraised value so that the lender has room to sell the stone in the event of default payment. If the lenders will base the amount on the Rapaport report, the amount given to the borrower will be forty percent of what is reported. It is quite low but it is good enough if one is a bit desperate to get money.

One of the main reasons why people take is loan anyway is really because it is easy to get. As long as the diamonds are already approved and the affidavit has been signed, then the money can be given. In fact, most people get their money in a few days after presenting their collateral for approval.

For those who cannot seem to get access to loans but would really need the money due to whatever circumstance, this is a great alternative. It may seem like a bad deal since the loan amount gotten is pretty low, but it is still higher than that of a pawn shop. That is why it is only recommended for those who need the money badly but really cannot get a loan from a bank or lending institution because of strict requirements.




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