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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 $100,000.
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.
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