Lombard loans are special loans that are offered against collateral. They are available in pawnshops that operate throughout Poland. A loan of this kind can be obtained immediately and on simple terms. What is worth knowing about them?
A visit to a pawnshop is one of the possible methods of obtaining cash . Then, obtaining a loan is possible by presenting an appropriate security – most often it is a pledge of movable, less-defined transferable rights, for example bonds or shares. Of course, in order to get such a loan, a pledge must have a certain value – it depends on it the amount that we will be able to receive.
What can we pledge at a pawn shop?
Lombardy accept various types of pledge. Most often these are jewelry, watches, electronics and household appliances, telephones and tablets, computers. Also, the pawnshop can accept sports equipment, antiques and paintings from us. Basically, we can deposit almost any item that represents high value. This item is taken to the pawnshop for the duration of the loan.
Before obtaining a lombard loan offer, the item is usually checked by an employee who is also an appraiser. This is to determine its value. It is worth remembering that the amount of the loan can not exceed the value of the pledge.
What are the lombard loan conditions?
Like other types of loans, also those offered to us by pawnshops have specific conditions. The lender, ie the pawnshop, then determines the terms – repayment date, commission and other details. Of course, a loan agreement is also being prepared, for which we will need a personal ID or other photo ID, for example a driver’s license or passport.
Loans offered by pawnshops are classified as short-term loans. Usually contracts are concluded for up to 31 calendar days, but there is a possibility to extend the repayment period.
Lombard also collects commissions for each loan granted. The amount of the commission depends on the amount of the loan and the repayment date. Generally, the longer the repayment period and the more valuable the item, the higher the commission. Most often, the minimum commission is determined independent of the value of the item and the loan period, for example 10 zlotys.
What if we do not return the lombard loan?
If the debt is not repaid, the items pledged by the borrower become the property of the pawnshop. Then, most often they are put up for sale, so if we do not repay the obligation on time, and we do not prolong the repayment period, our items may simply fall out. This is a big problem when we pledge items that have not only a monetary value but also a sentimental value, for example family jewelry.
In summary, lombard loans are an interesting proposition for people who need extra cash. However, we must take into account that if the debt is not repaid on time, our subject of the pledge will be forfeited.