Loans Against Jewellery and Watches
How much can I borrow against my jewellery or watch?
The short answer
The amount you can borrow depends on two things: what the lender assesses the item to be worth in the resale market, and the proportion of that value it is prepared to lend. The credit and affordability assessments required by law can also affect the amount. The loan-to-value Knox applies depends on the item: up to 75% of the assessed value for gold, 60% for silver and 50% for watches and handbags. No figure is final until the item has been examined and you have received a pre-agreement quotation.
How a loan amount is generally worked out
A secured lender starts with an assessed value, which is usually closer to what the item would fetch if sold than to its retail or insurance value. It then applies an advance rate, lending only part of that value, so that there is a buffer if prices fall or the item takes time to sell. The result is the most the lender would advance against that item, before the credit assessment is taken into account.
What affects the value of jewellery
For jewellery, the main factors are the type and purity of the metal, the weight of precious metal, the condition of the piece and current metal prices. Gemstones may be valued separately, on a limited basis or not at all, depending on the lender's policy.
What affects the value of a watch
For a watch, the assessment considers the brand, model reference, authenticity, condition, service history, box and papers, resale demand, market liquidity and evidence of ownership. The original retail price is not a reliable guide. Knox accepts luxury high-end watches, from brands such as Rolex, Cartier and Patek Philippe, for loan assessment.
Limits, affordability and Knox policy
Knox sets its own advance rates and loan limits, and these may change. Knox has no minimum loan amount. There is no maximum loan amount either: what you can borrow is limited only by the value of the item and the outcome of the credit assessment. Even where an item supports a larger amount, the National Credit Act requires credit providers to carry out the assessments it prescribes for the type of agreement, and these can lead to a lower amount or a declined application. Borrowing less than the maximum available generally means paying less interest overall.
What to do next
Request an assessment and bring the item with your identity documents and proof of ownership. It can help to work out how much you actually need before you go, and to ask for the quotation to show the total cost of credit over the full term. Bring your ID, proof of address (dated within the last 3 months), the bank details for the account the loan should be paid into and for the debit order, and any certificates, invoices or papers for the item. If you are married in community of property, your spouse must consent to the loan.
How Knox handles this
Ready for the next step?
Speak to the Knox team about your situation. They will confirm current pricing, availability and requirements before you decide.
