All about Lombard loans – what’s that?

Lombard payday loans are characterized by a short repayment period. Most often they are granted for a maximum of 30 days during which a specific object is pledged at the pawnshop, but it is not its property.

It is important that the pawnshop, when the item is pledged, is obliged to keep it in such conditions that after a certain period of time and repayment of the loan it can return to the owner intact.

A Lombard loan can be taken out by pledging e.g. jewelry, works of art or electronic equipment.

Pawnshop wipes are the perfect solution for people who need quick cash but do not want to completely get rid of specific items. It often happens that we have a valuable thing that is a family souvenir.

So we have a lot of affection for her and we don’t want her to disappear from our homes. In such a situation, it is worth using a Lombard loan.

Lombard loan in a bank

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We can also receive the pawnshop payday loan from the bank. In this situation, its security can be PKO books, treasury bills or a blockage of funds on a personal account. It is worth knowing that banks also allow you to pledge jewelry or gold as a form of loan security.

Lombard loans – on what terms are they granted?

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At the pawnshop, we can pledge the selected item, for which you will need a pawn loan agreement. It must contain basic information, such as customer data, amount of payday loan, a form of pledge and detailed description of the pledged object, loan repayment date, additional service fees, the value of the pledged item and signatures of both parties concluding the contract.

Lombard loan – agreement

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If you want to take Lombard loans without risk, you must sign a contract. It is a kind of security for both the customer and the pawnshop.

In the document, both parties undertake to meet certain conditions. The customer declares that in a given period he will repay the loan and the pawnshop that he provides him with financial assistance based on the pledged item.

If the borrower fails to repay the debt within the specified time or fails to report to the pawnbroker to extend the repayment deadline, the pledge automatically becomes the pawnbroker. Based on this it can go on sale.

Lombard loans without collateral and against collateral

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We already know what Lombard loans are against, however, it is worth familiarizing yourself with the issue of what we can pawn at a pawnshop in favor of payday loans. We can, for example, take out Lombard loans against real estate or:

  • gold and precious coins
  • home appliances and electronics
  • electronic equipment – laptops, computers, tablets
  • jewelry
  • antiques, works of art
  • sports equipment – e.g. bicycle
  • game consoles.

It is worth knowing that appraisers in pawnshops often underestimate the value of pledged things and offer clients cash in the amount of about 50% of the value of the material good. No wonder when we want to pawn e.g. a bike worth USD 2,000, and we offer pawnshop only half the amount.

Lombard loans against real estate

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It is often the case that a Lombard loan against real estate will result in lower fees. In this case, we can pledge apartments or houses, garages/parking spaces in the garage hall, warehouses and halls, arable land and construction plots.

The initial valuation is made on the basis of photos of the property, documents and a detailed description. The legal status is also verified, the mortgage and potential bank or bailiff pledges are checked (the property must be free of all pledges).

A loan agreement against real estate is signed in a notary’s office in the form of an act, and all costs related to such a service are borne by the borrower.

Lombard loan without a pledge – is it possible?

Some pawnshops include pawn-less pawn loans in their offers. Most often this type of service allows you to borrow up to USD 1,500 for a period of max. 30 days. To obtain such a loan, you must be at least 18 years old, have Polish citizenship and a valid ID card.

The borrower must also have a valid phone number as well as an account in a Polish bank. To receive a pawn loan, just fill out the form in which you enter your personal details.

The identity verification is then carried out on the basis of the applicant’s transfer of USD 0.01, USD 0.01 or USD 1. Lombard loans are an alternative to parabanks, which may refuse the payday loan application.

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