The easiest way for you to have some cash is to get a collateral loan. If this is the way you prefer taking, you can use jewelry as collateral to receive the loan. Remember that a collateral loan is also popularly called a secured loan where the amount of the loan usually depends on the value of your jewelry. Once you give out the collateral and receive the loan, you must pay it off to get your jewelry back.

This post explains the various ways you can obtain a collateral loan


Many people are familiar with the pawn shops that give out loans depending on the value of an item. In most cases, the pawn shop might offer you a fraction of your item’s value. You can renew this collateral loan periodically, usually anywhere between one month and four months. Besides, you don’t have to worry about your jewelry as long as you continue paying the loan and the shop will keep it in storage until you decide to collect it.

However, if default on the loan repayments, the pawnshop can sell your jewelry to recover the money they advanced to you. Pawnshops are regulated, though there are some variations between different shops. At the same time, you need to shop around because different pawnshops can value your jewelry differently.

Secured jewelry lenders

Another option of acquiring a collateral loan is through secured jewelry lenders. These companies specialize in handling jewelry, which can work in your favor. You see, such companies can give you a fair valuation of your jewelry, meaning that they can give you a higher percentage of the value of your jewelry.

Like the pawnshops, you should understand that your jewelry is collateral, so you need to make regular payments as per agreement with the lender. The good news is that most lenders who offer collateral loans on jewelry charge lower storage fees and interest rates to make it more affordable for you to borrow money from them.

A bank loan

The traditional forms of collateral loans with banks are car loans and home loans. Today, some banks can provide you a loan that is secured by your valuable asset. Here is what many banks require you to do before they offer such loans. They usually want you to give them a collateral appraisal that confirms the value of your asset.

In the case of jewelry, the bank can have an idea of how quickly they can sell it in the event of a payment default. Unfortunately, most banks might not give you a small loan, so you may need to have a valuable and large piece of jewelry to secure a loan.

Regardless of the type of lenders, all of them are interested only to hold on to your jewelry. Understandably, this is the only way these companies can safeguard their interests if you don’t repay the loan. Therefore, it’s in your best interest to make regular payments to make sure that you don’t lose your jewelry. If you stick to your contractual agreement, perhaps a collateral loan is your option.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like