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Bank Loans vs Pawn Loans: What’s the Difference?

Let’s admit it. Sometimes, we want things we can’t afford. Most of the time, we can curb such destructive desires because we know better. However, there are rare times when that thing we want is actually also a thing we need. If that’s the case, then maybe it’s time to think about getting a loan.

There are several ways to get a loan in the Philippines, but let’s compare two of the most common methods: loans from banks and loans from pawnshops.

Who can get a loan?

To apply for a bank loan, you must have an account in a bank. You also need to meet a certain financial standard depending on the type of loan (housing, business or car) and the amount of money you want to borrow.

Pawn loans don’t need any sort of membership. As long as you have something valuable enough to pawn, you’re good to go.

How much can I get?

Bank loans can readily give higher amounts of funds. More often than not, people take out bank loans to pay for large expenses like cars, a house, or to start a business.

The amount of money you can get in a pawn loan depends on the value of the pawned item. Likely, it won’t reach the same amount than that of bank loans’.

How long does it take?

Typically, the entire process of applying, reviewing, and approving a bank loan takes around seven days. In some cases, it may even take a little longer.

On the other hand, as long as everything is clear, a pawn loan won’t even take you an entire day. This is good news for people who are in urgent need of money.

Which is best for me?

It depends on your needs really. If you plan on getting a loan for a business, a bank loan might be more suitable as it’s likely that you’ll need a large amount to get your startup running. However, pawn loans are more convenient if there’s an emergency, if you’re in a hurry, or if you just need a certain amount to tide you over the next few weeks.

With that in mind, if you are in need of no-fuss quick cash, Cebuana Lhuillier has got your back. With our Pawning Service, you can feel at ease that you’re getting your collateral’s worth. Our expert appraisers will provide you with the highest appraisals and the fairest terms. Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.