What is a pledge loan? – Keys, tips and when to apply

A pledge loan is an alternative to the benefits of banking entities or those coming from online companies. What is a particular pledge loan? It is a form of financing, similar to the loan, since a person is willing to offer their client or user a certain economic amount, but this must leave a property or a garment that has a price similar to that amount.

That is, if for example, you want to buy a car, the pledge loan would be the equivalent of the value of that car and, in case of not returning the money on time, they could always keep the pledge, which in this case is the car.

How is the pledge loan made?

The pledge loan is very simple. Both parties draw up a contract stipulating garments or authorized goods that work as insurance for the return of that economic amount. This garment can be of two types, floating or fixed. The first is related to raw materials or merchandise, while the second has to do with products, furniture or fruits.

This product is usually in the possession of the debtor, the person who asks for the loan. Although, in the contract should be set the conditions for this individual to make use of the property. For example, if it is a car, the times or times when it can be used will be established, it can be only for work or in case of emergency.

In addition, at all times the property must remain in perfect condition, even the lender can go to supervise if it is stipulated in the letter. The first person can not sell the car either until the debt is completely canceled. This ensures that the amount borrowed is returned and also that the car remains in the possession of both individuals linked to the contract.

What should you know before applying for a pledge loan?

There are several things you should keep in mind before applying for a pledge loan. Next, we will tell you in a clear and detailed manner which are the most important:

  • Read carefully the conditions, commissions and interest with which you will work
  • Ask about the experience of that financial institution, how many years have they been working and how many similar cases they have worked with.
  • Always analyze the additional expenses that may arise from the loan. Also, keep in mind what could happen if you delayed payment.
  • Before signing, pay special attention to the fine print and carefully read all the documents.
  • If you have any questions and if you do not agree, ask another entity

Our main advice: compare different places before making a decision. For example, Our website is a leading comparator in the loan and credit market. We advise you that before deciding to hire any type of service, compare and make decisions in a very thoughtful way. If you have not read all the terms in detail, you can take a very nasty surprise when the contract ends; You can even see a very high economic amount that you did not count on.

In our website we offer the comparison and contracting of credits instantly. You do not need to lend your car to a stranger, or endorse it. The companies that work with us do not need these requirements. And, in addition, they are very clear and transparent. From the first moment you can see the amount to return with the interest rate, so you will not have any displeasure or there will be misunderstandings.

Alternatives to pledge loans

Nowadays there are plenty of alternatives to get money fast or in a matter of a few hours or days. You do not need to resort to pledge loans to get it. Why do not we recommend this alternative? Very simple, because if you take more time than expected to return the agreed amount, you may be left without the car or the properties that appear on the contrary. Not all companies are flexible and you can take more than one dislike.

Below, we explain what are the options with which you have accounts, which are safer and more reliable.

Personal loans

This is a great option for those people who are going through a difficult and particular situation. The lenders who work with us, at our website, know all the difficult circumstances that their clients have gone through. For that reason, they are willing to offer the best economic amount depending on your special situation.

Immediate loans

If you need the money in 24 hours, do not worry! At our website we compare prices very quickly and in just a few minutes you will know which loan to request immediately. We do the work for you, to give you the best solutions.

Loans without bureaus

If you are on a list of defaulters, you should not worry either. Our companies work every day of the year, 24 hours a day, to provide the solution you need regardless of your circumstances. If you have a recurring income, despite not having a salary, we are the best option!

Online loans

You will not need to go to any entity, carry out unnecessary paperwork or long waits. With our website, you will make a quick comparison of the credits available in the market in just one click. In addition, we will show you transparently the interest rate, so you know at all times how much you should return.

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