Frequently Asked Questions
- What are the advantages of a Provident Loan Society “Jewelry Collateral Loan” compared to other pawnshops?
There are many advantages to taking out a collateral loan with us:
- We allow our customers to borrow up to $100,000.
- Because we are a Not-For-Profit, we are able to give our customers lower fees and interest rates than our For-Profit competitors.
- There are NO installment payments, and ALL fees are disclosed, to you, when taking out a loan.
- There are no required payments for up to six months.
- We calculate your loans interest Daily as opposed to Monthly.
- If you can’t pay back your loan in 6 months, and need a little extra time we can help you with a “Grace Period”.
- What type of collateral does Provident Loan accept?
Gold and diamond jewelry, fine Swiss watches, gold coins and ingots, silverware (sterling silver, not silver plated), and loose diamonds (.50 CT or above). We do not accept silver jewelry unless item is manufactured by brand names. (i.e. Tiffany, Cartier, or similar.)
- What is the procedure for making secured loans with Provident?
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 loan offer is made. If acceptable, the borrower must present identification and acknowledge their ownership of the collateral to receive fast cash and a loan ticket. The whole procedure usually takes less than 15 or 20 minutes. When borrowing by mail, our check is forwarded within 24 hours.
- I don’t have very good credit. Can I still take out a loan with you?
Yes! At Provident Loan, anyone can take out a loan with us regardless of their credit score.
- What is the length of the secured loan?
Provident makes 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 secure a new loan.
- How do you calculate the secured loan value of my collateral?
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 from $1 to $100,000.
- What interest rate and fees will be charged?
Provident Loan’s interest rate on secured loans is 2.167% per month (26% annual interest rate) calculated for the exact number of days the loan is outstanding. This is substantially less than pawn shops and the 48% annual interest rate permitted under New York State statutes. A Ticket Fee and a low Vault Storage Fee are also charged.
- What do you mean by “Daily Interest”?
Our interest rates are calculated by the amount of days you have a loan with us, as opposed to our For-Profit competitors who calculate interest by the month. In short, if you pay back your loan in 38 day, we calculate your interest for 38 days; where a For-Profit pawnshop will probably charge you for 2 months of interest.
- What happens if I don't repay the secured loan and fees?
A full interest payment every six months will safeguard your collateral for another six months. The collateral for a defaulted 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.
- How does your “Grace Period” work?
At The Provident Loan Society, we want you to keep your valuables. If you have trouble making a payment? At the end of the six-month loan period, you can contact us and we will do our best to assist you in extending your time.
- How is my collateral protected while in your possession?
Your collateral is stored in secured, alarmed vaults. Provident does not provide insurance. You may want to maintain your present insurance coverage as added protection for your items.
- What are you going to do with my contact information?
Absolutely nothing! Provident Loan never shares or sells any of the information that you provide us.