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.
As mentioned above, the diamonds will be used as collateral for the loan. However, not all diamonds will be eligible for the lender to take as they need to be tested for authenticity first. Aside from just authenticity though, they are also usually tested for grade so that the lender can put a value on them, but more on that later.
Just to give an idea, diamonds are either loose or mounted types. The loose types are the pure stones that have not really been cut or embedded on any ring or necklace. The mounted types, on the other hand, are the ones that have already been embedded.
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 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.
Generally, the loan would be something of eighty percent of the appraised value of the stone so that the lenders can have room to sell it. The Rapaport Diamond Report would have a higher amount but it is not usually followed since the amount that is given to the borrower will be something like forty percent of the report amount. That is good enough if one really needs money.
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.
So for those who are a little bit strapped for money, here is a great option that one can have in order to get fast cash. The thing about these kinds of loans is that they value the diamonds pretty low which is quite normal because it gives the lenders security while holding on to it. That is why it is only recommended to take this type of loan only if one really needs the money.
As mentioned above, the diamonds will be used as collateral for the loan. However, not all diamonds will be eligible for the lender to take as they need to be tested for authenticity first. Aside from just authenticity though, they are also usually tested for grade so that the lender can put a value on them, but more on that later.
Just to give an idea, diamonds are either loose or mounted types. The loose types are the pure stones that have not really been cut or embedded on any ring or necklace. The mounted types, on the other hand, are the ones that have already been embedded.
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 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.
Generally, the loan would be something of eighty percent of the appraised value of the stone so that the lenders can have room to sell it. The Rapaport Diamond Report would have a higher amount but it is not usually followed since the amount that is given to the borrower will be something like forty percent of the report amount. That is good enough if one really needs money.
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.
So for those who are a little bit strapped for money, here is a great option that one can have in order to get fast cash. The thing about these kinds of loans is that they value the diamonds pretty low which is quite normal because it gives the lenders security while holding on to it. That is why it is only recommended to take this type of loan only if one really needs the money.
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To apply for diamond loans Largo FL locals can rely on the following company. Get a quote today by visiting http://www.cappelloloans.com/jewlery-services.
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