Nowadays, many people are finding it difficult to secure loans as the economy is struggling. Many people need money to pay for emergencies that can arise at any day in their lives. People think that it is only financial institutions that give financial help or payday lenders but that is not true. There exist pawnbrokers Melbourne or gold dealers who can offer you similar help to solve your financial problems by securing a gold loan against your gold jewellery.
Melbourne Pawnbrokers lend against your gold items as a collateral loan. Bring in your gold jewellery, the pawnbrokers Melbourne will evaluate your gold and advise you accordingly their value and interest rate. The higher the loan the lower the interest rate.
There is an agreement that is signed by the pawnbroker and the person requesting the gold loan before money is given out. This is called a ‘pawn ticket’, this ticket shows details of the gold items pledged by you, the amount of money you will be borrowing, the term of the gold loan, interest rate and interest payable in dollar figures. If by the odd chance you are unable to pay back your gold loan, it will not affect your credit rating as the pawnbroker will simply sell your items to recover his debt.
You will receive your gold items back once you pay back all the principle amount and interest due at the specified period of time. Different types of pawnbrokers have different interest rates so if you have gold items you can pledge it is recommended seeing a gold dealer who also does loans against gold items. Gold dealers are able to offer much lower interest rates than traditional pawnbrokers as they are usually more highly capitalised. However, it is still recommended you try a bank or financial institution first prior to getting a gold loan.
Melbourne is one the best option for you to acquire a gold loan due to the high competition of gold dealers and pawnbrokers. Melbourne is considered the gold capital of Australia as you can find more gold dealers in Melbourne than any other city in Australia. The good thing about a gold loan is the condition of the items are not important as the gold dealer will simply melt your gold if you default. Gold dealers and pawnbrokers do safeguard all the gold itemised pledged to them in their secure premises and fire proof safe’s.
In today’s modern where everything is digitalized there are many pawnbrokers marketing online and offering instant cash applications. While it may seem easy and tempting for you to apply for these loans online, it is recommended that you avoid them due to the high hidden fees and charges associated with these sorts of loans.
You should seek the help from reputable pawnbrokers or gold dealers in person, this way the pawnbroker or gold dealer can be upfront and honest and you can see first hand what your gold items are worth. By doing this, you will be able to secure a higher loan for a lower interest rate that can go towards resolving your financial problems today.