How long can I borrow against my jewellery or watch?

What the loan term means

The term is the period over which the loan runs and by the end of which the full amount, including interest and fees, must be repaid. It is stated in the pre-agreement quotation and in the credit agreement, together with how repayments are made. Some agreements require regular instalments, while others allow repayment in one amount at the end of the term.

How the term affects the cost

Interest and monthly fees accrue for as long as the loan is outstanding, so a longer term generally means a higher total cost of credit. Choosing a term that matches when you realistically expect to repay helps avoid both unnecessary cost and the pressure of a deadline you cannot meet.

What depends on Knox policy

The terms Knox offers, how repayments can be made and whether a loan can be extended are set by Knox's credit policy and the agreement. Repayments are collected by debit order on the dates in your repayment schedule. You can pay more than the instalment, or settle in full, at any time, and you receive a monthly statement by email. Any extension has to be agreed in writing before the term ends. There is no automatic right to extend a loan. Any change to the term must be agreed and recorded in writing.

Settling early or running out of time

The National Credit Act gives consumers the right to settle a credit agreement early. The settlement amount generally includes the outstanding balance and the interest and fees due up to the settlement date. You can settle early at any time without penalty. Ask Knox for a settlement figure, which is valid for 24 hours; you can also make extra payments at any time without notice. If you cannot repay by the end of the term, contact the credit provider before the due date. The agreement sets out the default steps, including when a pledged item may be sold. If a payment is missed, Knox sends a written default notice giving you time to pay. If the arrears are not paid within that period, the loan ends and Knox may sell the pledged goods without a court order. The proceeds settle what you owe: any surplus is paid back to you, and you are not liable for any shortfall. Default interest is charged at the same rate as the loan.

What to do next

Work out when you expect to have the funds to repay, and ask for the quotation to show the total cost over that term. Read the sections on repayment, early settlement, extension, statements, default and complaints before you sign.