FAQ About Personal Asset Loans
If you have often wondered about the process of getting a personal asset loan approved, we’ve compiled a handy list of frequently-asked questions (FAQ) to help answer your queries. Read on for everything you need to know if you plan to take out a loan from an online pawnbroker.
How Much Can I Borrow?
Because personal asset loans are secured against your valuable items, the amount you are able to borrow will depend on how much your luxury items are worth. A professional valuer will help you determine the price your goods would fetch at an auction based on the current market conditions, and this will be used to help you determine your loan amount.
As a general rule, many luxury items can have a loan value of between £1,000 and £1 million.
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How Do I Get My Items Valued?
Once you have made your application to an online lender, an experienced valuation expert will get in touch. They can either meet you in the comfort of your own home or at an external location to assess your items – these can include everything from vintage wines and fine art to classic cars, boats or even jewellery.
Experienced valuers may have previously worked for a large auction house like Bonhams or Sotheby’s, and they are likely members of leading industry organisations, such as the Royal Institution of Chartered Surveyors.
How Quickly Can I Get My Cash?
Once your items have been valued and you decide to go ahead with your loan, the money can often be wired to your account on the same day, or within 24 hours. Your assets will be held by your online lender until your short-term loan has been repaid – an average term for this type of loan is usually about six months, but you can pay back your loan more quickly if you like.
What Interest Rate Can I Expect?
The amount of interest you will be expected to pay on your loan will depend on your individual circumstances, but as a general rule, you can expect set-up fees of between 3% and 7%, as well as a flat monthly interest rate, which can range between 2.99% and 4.99%.
In most cases, there is absolutely no penalty for repaying your loan early – in fact, it is in your interest to do so! Your assets will be returned to you immediately once the loan has been paid back in full.
What Happens if I Need More Time to Pay Back My Loan?
While most loan terms are around six months, if you feel you may require more time to repay your loan, the best course of action is to get in touch with your lender immediately. Usually, a loan extension can be granted for a further six months – you may be required to pay back the interest you have accrued to this point, and then a new loan agreement can be drawn up.
In the rare event you are unable to repay your loan after its seven-month anniversary date, any outstanding amounts could be subject to a late payment penalty charge, and if the loan is not renewed or redeemed, your items may be sold at auction. Any funds in excess of the loan and its associated fees will be returned to you.
