Why Pawn Shops Are Friendly Loan Sources

You don’t have to worry about taking out a lawn if you can pawn something valuable. Pawn shops are friendly loan sources that give you the best rates regardless of your economic circumstances. You don’t have to fret and worry as you do when you take out a loan with a financial institution. Everything is clear-cut when you are working with a pawn shop.

However, you don’t want to go to just any pawn shop in Melbourne if you plan to take out a pawn loan. You want to choose the number-one business locally. If you have gold, find a pawn shop that will pawn your precious pieces or buy them at a comparable price. Usually, if you sell gold items, you will get a little bit more per gram than if they are pawned.

Some of the Perks of Pawning Gold and Fine Jewellery

When you find the best pawn dealer in Melbourne, you will know it as the business will provide the following amenities:

  • You will receive more for your pawned items as the shop will deal in gold jewellery, diamonds, luxury watches, gold and silver bullion, gold coins, and scrap gold.
  • You can obtain an instant cash loan for the jewellery you pawn and receive the cash on the spot.
  • You don’t have to worry about your credit rating; again, everyone is welcome to get a loan at a pawn shop.
  • No appointment is needed. You can walk right into the business and make a transaction.
  • You will receive the best pawn rates locally.
  • You will receive a guarantee.

Repaying the Loan Amount: How the Fees Are Assessed

Indeed, when you do have fine jewellery or gold or silver items to pawn, you will want to go with the company that offers the lowest monthly fees for the loan amount. For example, if you receive a loan for $20,000 or more, you should only pay about 2% to 3%. The most that you should ever pay is 10%, which would cover a smaller loan that is approximately $200 to $300.

Therefore, the best pawn shop is a niche shop that only lends on gold jewellery, diamonds, luxury watches, gold coins, rings, and silver or gold bullion. The monthly fee for your loan is calculated based on the amount of funding. Again, if you take out a larger loan, you monthly fee will be lower than if you must pay back a small loan. You don’t have to pay anything other than the monthly fee.

Typically, when you take out a pawn loan of this type, it lasts for three months. However, this does not mean that you cannot extend it for a longer period. You will just have to pay the interest owing. You can also redeem your pawned item during any part of the loan period.