A diamond secured loan is a specialized form of financing in which precious stones act as collateral for obtaining funds. This type of lending is most often used by jewelry companies, private investors or collectors who temporarily need liquidity without selling valuable assets.
The process begins with an expert assessment: diamonds must be certified (for example, GIA, HRD or IGI) and meet international quality standards - in color, clarity, weight and cut. Based on this assessment, the bank or private finance company determines the market value of the stone and the percentage that it is willing to issue in the form of a loan. Usually this is from 50% to 70% of the appraised value
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After the conclusion of the agreement, the stones are transferred for storage (usually to a bank or specialized depository), where they remain until the loan is fully repaid. The advantage of such a loan is its relatively low risks for the lender, and therefore more favorable conditions for the borrower: lower interest rates, flexible terms, fast processing.
A loan secured by diamonds allows you to keep valuable assets in your possession, while at the same time obtaining the necessary financial resources - without the need to sell stones when the market is not favorable. This is convenient, especially if we are talking about hereditary or investment diamonds.
