As the economic downturn continues to put Nigerians under financial pressure, a maiden pawn brokering firm, Gold Exchange Limited, has commenced operations in the country to help families and business owners get over liquidity problems through access to stress-free short-term loans.
According to the promoters of the company, its decision to come to the market is as a result of difficulties currently associated with sourcing of funds from banks.
The company stated that most times, some cash-trapped individuals own precious items that could bail them out of their predicament, but are either ignorant or unaware of the opportunity. According to the company, in many western countries, individuals in such scenario turn to Pawning, and Gold Exchange Ltd.
With an office in Nigeria designed for similar services, individuals in need of quick financial solution, and who have precious metals such as gold, silver and platinum can use such item as collateral for short-term loans.
Managing Director of the company, Mr. Victor Okezie, while speaking on the initiative said: “Individuals with such valuables should stop hoarding them. A valuable that can’t help you in time of need isn’t worth it.
“Nigerians in need of short-term loans should approach us and pawn with valuables such as gold, silver platinum. The item is weighed and valued. And loan would be granted based on the value of such item. Our interest percentage is reasonable and negotiable depending on how much is being considered.
“Pawn loan doesn’t require any credit check, bank account or co-signer. We are registered and we give legal documents. We ask verification questions to ensure the person with the item is the rightful owner. Once a deal is signed, the item is kept safe in a vault until the loan is paid. An individual can also approach us for an outright sale of such item.”
He explained that unlike pawning in the western world which is guided by stringent rules, the company would give it a human face by giving extra weeks of grace to borrowers who couldn’t meet up with payment deadline.