Secured Loan FAQ's
Q. What is the procedure for making secured loans with Provident?
A. To make secured loans, a borrower
must present or ship collateral to one of our offices. The
collateral is appraised for its loan value and a secured loan
offer is made. If acceptable, the borrower presents identification,
signs a signature card acknowledging ownership of the collateral,
and receives fast cash and a secured loan ticket. The whole
procedure usually takes less than 15 or 20 minutes. When borrowing
by mail, our check is forwarded within 24 hours.
Q. How do you calculate the secured
loan value of my collateral?
A. Provident's schedule of secured loans has no direct relationship
to the current retail market. If we must eventually dispose
of the collateral, the items are auctioned at a competitive
public auction sale. The prices realized at these jewelry
auctions form the basis for Provident's loan schedule. You
will find that our loan schedule is very competitive within
the industry. Secured loans are made up to $50,000.
Q. What types of items do you accept
as collateral for secured loans?
A. Provident makes secured loans chiefly on diamond and gold
jewelry. Loose unmounted diamonds are not accepted for secured
loans. Acceptable gold jewelry ranges from 10KT to 24KT. Secured
loans are also made on watches, sterling silver flatware and
hollowware items. Gold coins, either loose or made into jewelry,
are evaluated strictly by weight.
Q. What is the length of the secured
loan?
A. Provident makes secured loans for 6 months, although you
may choose to reduce or redeem the loan at any time during
that period. The payment of interest and fees will extend
secured loans for a new 6 month period.
Q. What interest rate and fees will
be charged?
A. Provident's interest rate on secured loans is 2.167% per
month (26% Annual Percentage Rate) calculated for the exact
number of days the loan is outstanding. This is substantially
less than pawn shops and the 48% APR permitted under New York
State statutes. A Ticket Fee and a low Vault Storage Fee are
also charged.
Q. What happens if I don't repay
the secured loan?
A. A payment every six months will safeguard your collateral for another six months.
However, you are under no obligation to repay
secured loans. Your collateral for the loan will be sold at
a competitive public jewelry auction. The amount realized
at jewelry auction in excess of principal, interest due, fees
and auction expenses is returned to the borrower. Provident
bears any loss incurred at sale.
Q. How is my collateral protected
while in your possession?
A. The collateral for secured loans is stored in steel vaults on the premises.
Additional electronic vault and premise protection
is proved by a major security company. Provident does not
provide borrowers insurance against loss by burglary or robbery.
You may want to maintain your present insurance coverage as
added protection for your items.
Have more questions? Please
contact us, visit
one of our locations
or call us toll free at 1-800-757-7296.
We’re happy to help and will answer any questions
you may have.
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