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Pawnshop organizations are widely spread and recognized among potential borrowers, as it is considered that it is as simple as possible to draw up a loan agreement in such an organization, and the terms of lending are considered much more favorable than those of other non-bank lending lenders.
To some extent, it is true to find profitable pawnshop It is possible to arrange a loan in a short time in a pawnshop, but it is important to take into account certain features of the work of these creditors.
Mandatory registration of property as collateral
The main requirement in the field of pawnshop lending is the mandatory provision of some valuable property, which will later become collateral. The pledge is additional. a guarantee of the return of funds to the credit organization even if the borrower does not have a permanent salary or simply refuses to repay the debt from his personal funds. The fact is that in accordance with the terms of the loan, the pawnshop organization has the right to sell the client's property for full repayment of the loan debt, regardless of whether the person agrees to such a procedure or not.
Fairly favorable credit terms
The main positive feature of pawnbroker organizations is that they set a minimum number of requirements for their clients, and therefore almost every client who is able to provide their specific property as collateral under a credit agreement will be able to receive funds.
Yes, it is worth noting that only property documents and a passport with a permanent place of residence are required from the borrower's side. As a rule, the client's credit history is not checked, his solvency is not assessed, the place of work and education are not taken into account, and many other features and factors that are extremely important, for example, in bank lending, are omitted or somewhat depreciated.
Possible overpayments under the credit agreement
Among the peculiarities of pawnshop lending, it is also worth mentioning that receiving funds is often accompanied by some mandatory additional procedures that will have to be paid by the client of the credit organization.
So, for example, it is always mandatory to conclude a property insurance contract against accidents, its depreciation in the modern market, and so on. Quite often, insurance is a mandatory service, without it it will not be possible to issue a credit agreement, although, according to the law, the creditor has no right to make the client pay for additional procedures and impose them on him.
As a result, you should be prepared for the fact that the overpayment under the credit agreement may increase somewhat during the process of its registration. Often, the fee for additional procedures is already included in the debt, but some creditors still require them to be paid before providing a certain amount in order to make sure of the reliability and solvency of the client.
