You might be saving money from the past ten years and have appropriately planned the finances to fulfill all your requirements, but since life is full of expectancies, you can need quick cash at any stage of life, and in such situations, the only thing that can save you is a loan. 

But this doesn’t mean that loans are used only for emergency cash needs as they can also be used for fulfilling your long pending wishes or investments that required giant financial planning and lots of money. 

When anybody thinks of taking a loan, they mostly start planning for the traditional loans full of complications, and it also comes with the risk of debt. Therefore, if you want to minimize the risk and opt for a seamless loan approval process, go for an asset-based loan like a diamond jewelry loan. 

But since many people are unaware of how the diamond loan works, we have put together this comprehensive guide that will make you familiar with all the aspects of asset-based loans. 

Like any other pawnshop and jewelry firm, the companies providing asset-based loans are highly regulated and licensed by the country and state government. So, you don’t have to worry about the reliability of an asset-based loan-providing company. 

The best thing about the companies providing asset-based loans is that they offer a lower rate of interest, unlike pawnshops. And since the market of asset-based loan-providing companies is very competitive, there are maximum chances that you are always going to get the best price.

A good asset-based loan providing company will give you all the information related to your diamond, interest rate, best price, and therefore, they will not just give you the right price; they will also act as your guide. 

How does the asset-based loan work?

One of the main reasons so many people go for the asset-based loan is that understanding the loan structure is simple and even the application process is seamless. In the asset-based loan, the client is given an appraisal amount for the value of any fine jewelry piece or any other valuable item they will bring in for getting the loan. 

After getting in touch with the company, one of the company representatives will give you a quote regarding the loan value of your item and share the details of how much money the company can loan you for your item. 

But keep in mind that loan appraisals on any of the items are of no cost to you, and you are not bound to choose the loan even if you have approved a loan amount. This gives you complete control over the diamond loan procedure.

After choosing and accepting the loan money, the terms and conditions of the loan will be shared with you, and then you will be asked to complete the required documentation. But you can receive the money only after signing the final contract. 

How is the loan value of any item determined?

The company uses different factors for determining the amount of loan you can get against your valuable item. It always takes an experienced and educated jewelry expert to determine the right amount of money the client can receive in the form of a loan. 

If you are serious about getting the right price for your valuable item, you should always make sure that the company staff members you have chosen are GIA certified. GIA stands for the Gemological Institute of America, and it is a worldwide recognized standard used for determining the four C’s of the diamond; clarity, color, carat, and cut. 

What is required for getting an asset-based loan?

If you want to get a diamond loan, then along with the diamond, you will need to bring government-issued IDs like a driving license, passport, state-issued identification card, and much more. 

In addition to this, you can also bring the item’s paperwork like a certified appraisal, or you can also obtain a certificate of value. These papers help in making the loan approval process seamless and quick. 

There is also no limit to the number of asset-based loans you can get as long as you have the valuable asset. If you have ten pieces of diamond jewelry, then you can choose ten collateral loans without worrying about any issues. 

If you search for quick cash and don’t want to go on an arduous journey of getting the traditional loan approved, then the collateral loan can be the best option for you. In addition to being quick, easy, and seamless, you don’t fall into the trap of debt when you fail to repay the loan amount as you lose the collateral.

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