Pawnbroking is the oldest form of borrowing cash, and the evidence of its use dates back to more than 3,000 years ago. The process and idea are simple that worked well, and has stood the test of time. The Luxury Hut pawnbrokers London provides a simple, secure and hassle-free way to apply for a pawnshop loan. We always strive to ensure that the process is convenient as possible.
Are you thinking to apply for a pawn loan? Is it the first time? Then, you will surely have many questions about what a pawnshop loan is, how it works, what you need to have to get it, and more. So we have put together some commonly asked questions on pawnbroking to help you by taking you through all the basics.
A ‘pledge’ refers to any item of value that you used as security – also referred to as collateral -against a pawnbroking loan. It can be a luxury watch, gold, diamond jewellery, a car and more.
In pawnbroking, the concept of a pledge is that its value will be enough to cover the loan amount, interest or any cost outstanding in case the customer do not repay the loan for any reason.
When you repay the loan after the loan term ends, you will get back your pledge.
Pawnbroking is a quick, easy and secure way to borrow money against an item of value that you own. At The Luxury Hut, we lend against high-end luxury watches, diamond and gold jewellery or any gold item.
The loan amount you are likely to secure depends solely on the value of your collateral. Pawnbrokers will not check your credit score or how much you earn.
The maximum loan term is usually six to seven months. However, you can pay off the loan any time during your loan tenure and redeem your asset.
You can pawn virtually any item of value. However, the things accepted as collateral for a pawn loan typically vary from one pawnbroker to another.
At The Luxury Hut, you can secure a loan against luxury watches, diamond jewellery, loose diamonds and gold (jewellery, scrap gold or any gold item).
Opting for a pawn loan is always a better choice than getting a personal loan. Why? Here are some of the significant advantages:
A pawn loan gives you access to cash instantly, unlike other loan types that usually take a couple of weeks to approve. You will only need an item of value to keep as security.
At The Luxury Hut, we will appraise your asset and offer you a cash loan, even if your credit score is poor. Accept our offer and get paid on the spot.
Unlike banks or any financial institutions, a pawnshop loan requires minimal paperwork for approval. Here at The Luxury Hut, we only ask for valid proof of identification to get into the agreement. And after you accept our loan offer, you will have to sign a pledge receipt that outlines your loan terms. That’s it.
From visiting our pawn shop in London, getting a quote, to walking out with your cash, the entire pawnbroking process may take as little as an hour to complete.
Pawnbrokers do not check credit score or how much you earn before approving a loan. As long as you have a precious item to use as collateral, you can opt for a pawnshop loan.
Pawnbroking allows you to retain ownership of your asset, and it significantly matters if you have a strong emotional attachment with the item.
Whenever you need to secure some fast cash or in short-term financial needs, you can choose to unlock the value of your asset by getting a pawn loan. You can get a pawn loan and cash in your hand within a few minutes.
As we mentioned earlier, pawnbroking allows you to instantly borrow the money you need against a precious item without any credit check.
Moreover, you do not also have to go through a lengthy application process to get the loan. The asset you keep as security will determine the amount you can borrow from the pawnbrokers in London at The Luxury Hut.
Our interest rates vary from 4% – 6% per month. Take a look at the representative example given below –
Representative Example 1: Loan of £6000 borrowed for three months
Total interest for three months – £900
Representative Example 2: Loan of £500 borrowed for one month
The amount you can borrow and that we are willing to lend will depend on the value of your collateral. However, the minimum amount of cash loan you can borrow from The Luxury Hut pawnbrokers London is £300.
Fill in our online form providing all details on your asset. We will contact you immediately with a loan quote via phone or email. Alternatively, you can call us on 0207 242 9160 now for an instant valuation over the phone.
At The Luxury Hut, the maximum term for a pawnbroking loan is seven months.
You can retrieve your collateral at any time during your loan term, provided you pay off the entire loan amount and the interest due. We do not charge any early retrieval fees.
Yes. We will store your asset securely in our safe until you come back to repay your loan in full and collect it.
If you cannot repay and collect your pledge within the agreed time for any reason, we can offer you a choice to renew your loan. This means we can extend your loan agreement for seven months for another seven months. You only have to pay the interest due at the end of the contract. And this will not affect your credit score.
However, it is recommended to repay and redeem your asset within the agreed loan term.
Yes. The Luxury Hut pawnbrokers in London are regulated by the Financial Conduct Authority (FCA). Thus, we abide by the applicable rules and guidelines issued by the FCA for pawnbroking. We are also a part of National Pawnbrokers Association (NPA).
For any further questions or concerns, you can contact us on 0207 242 9160.
The National Pawnbrokers Association (NPA) works to render independent pawnbrokers all over the nation the perfect resources and implements to consolidate the pawn industry. The members of NPA operate to amplify and develop the professional and pragmatic image of all pawnbrokers.
With that in mind, The National Pawnbrokers Association has authorised a significant independent research project that focuses on the experiences of pawnbroking customers.
The University of Bristol Personal Finance Research Centre undertook the research that obtained perceptions of customers’ views and their personal experiences.
However, the research included 1,669 pawnbroking customers from all across the nation and analysis were made based on the management information from 85,000 loans.
The pawnbroking research conducted by The National Pawnbrokers Association (NPA) details the findings given below –
Pawnbroking was considered as a high-cost option by just 5% of customers.
Out of ten customers, six of them said that they needed the pawn loan for their living expenses.
Customers opted for pawnbroking loans because of its speed, simplicity and convenience.
£243 is the mean average amount of credit, and it mostly lends against gold jewellery items.
More than 90% of customers were satisfied with the pawnbroking loans.
Thus, the findings show that most of the customers are familiar with the way the process of pawnbroking works. They are aware of the convenience of the pawn loans and delighted with its flexibilities.
Moreover, maximum customers redeem their collateral by paying off the loan amount on time. Many people also consider the process of renewing the pawn loan as one of the significant benefits of pawnbroking.
Interestingly, many customers did not consider the cost to be a matter of concern.
Ray Perry, NPA Chief Executive, said –
“We are delighted with the extremely high level of customer satisfaction and the value they see in the service provided, and we are pleased renewals are considered extremely important in supporting customer needs. We believe pawnbrokers are well placed and well equipped to continue to help customers as we start to move on from lockdown and the impact of Covid-19 on households.”
Indeed, pawnbroking is ideally the best way to raise instant cash without having to sell your precious asset outright. More and more people today are turning to pawnbrokers to get access to fast cash and meet their short-term financial needs.
Thus, trusted pawnbrokers like at The Luxury Hut are always working to make the pawning process more convenient than ever.
If you are looking to raise instant cash, get in touch with The Luxury Hut pawnbrokers in London.
With a secure online platform and an office in Hatton Garden, London, we provide our customers with a quick and secure way to get a loan against luxury watches, diamond and gold jewellery.
Moreover, as the trusted pawnbrokers in London, we aim to provide the highest amount of cash loan against the assets that customers want to pawn with us.
Pawnbroking may not be known as the oldest profession of the world, but its origin can be traced back to more than 3,000 years ago when pawn shops first turned up. Pawnbrokers used to provide credit to the peasants while being supervised by Imperial authorities.
Pawn shops were famous in ancient Greece and Rome. While small merchants used a pawn loan to begin their businesses during the Middle Ages, the Catholic Church imposed restrictions on charging interests for pawn loans. This eventually hindered the growth of pawn shops. However, with the increase in demand for such kind of credit in 14th and 15 century, the constraints loosened.
The pawnbroking industry that we know today can be traced back to 15th century, Italy when the financially dominated noble Medici family divided in two. While half of the family members became bankers, others became pawnbrokers who took half of the family crest. This pawnbroking part of the family integrated today’s instantly recognisable symbol of the pawnbrokers- the three gold balls.
However, the symbol has also been ascribed to the story of Saint Nicholas who has saved three poor young girls from dire poverty by giving them each a bag of gold so that they could get married.
European citizens procured pawn loans to aid their families financially as well as to acquire new businesses off the ground. Sometimes, a pawn shop is also called as ‘Lombard’ in Europe, referring to the House of Lombard that was a recognised family known for lending money.
In the 18th century, people belonging to lower class borrowed money against collateral from Franciscan monks for little or no interest. However, in the latter stages of the 19th century and early 20th century, there were virtually as many pawnbrokers as public buildings in Britain, lending cash on almost anything from cutlery and bed linen to the best wardrobes. With the fright of the workhouse draping over the lives of the poor, they used to try all means to avoid it, even if they had to pawn their belongings to obtain some amount of money temporarily.
Although pawnbrokers had earned itself a prejudiced reputation in the past, its image has enormously changed over the last twenty years or so.
The upsurge in the pawnbroking industry came during the credit boom in the 1980s, and it continued to flourish today with customers preferring this convenient High Street way to borrow money.
With more and more people looking to raise cash for a short period, the process of pawnbroking became an easy, quick and convenient way to secure short-term loans in the past few years. Today, there are many trustworthy local pawnbrokers in London or any other big city who provide entirely secure, transparent and straightforward service, making the pawnbroking process a significant alternative to any other way of borrowing money.
© The Luxury Hut is a trading name of Golden Cash Limited. Authorised and regulated by The Financial Conduct Authority for pawnbroking. Registered in England as Golden Cash Limited. Registered Number is 07309335. Registered office address: Treviot House, 186-192 High Road, IIford, Essex, IG1 1LR. Designed and Developed by The Luxury Hut. All Rights Reserved 2018