Loans Against Jewellery and Watches
Can I borrow against a luxury watch?
The short answer
Some lenders accept luxury watches as security for a loan, but availability varies and not every watch qualifies. Knox accepts luxury high-end watches, from brands such as Rolex, Cartier and Patek Philippe, for loan assessment. Where watch loans are offered, the lender looks at the brand, model reference, authenticity, condition, service history, box and papers, resale demand and proof of ownership, not the original retail price. Credit and affordability checks required by law apply, and all costs are disclosed in a quotation before you sign.
What borrowing against a watch involves
A watch-backed loan works like other secured loans: the watch is held as security while you repay an agreed amount, and it is released once the loan and all charges are settled. The lender relies on being able to sell the watch if the loan is not repaid, so it focuses on what the watch would realistically fetch in the resale market.
How a watch is generally assessed
A lender considering a watch typically looks at:
- the brand and model reference
- evidence that the watch is authentic and has not been altered with non-original parts
- its condition, including the case, bracelet, crystal and movement
- service history and whether a service is due
- whether the original box, papers and warranty card are present
- current resale demand and how readily that model sells
- evidence that you own the watch
The original retail price is not a reliable guide, because resale values for many models differ from what was paid in a shop.
What depends on Knox policy
Whether Knox currently lends against watches, which watches it will consider and how much it lends against an assessed value are matters of Knox's credit policy. 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. If watch loans are not available, Knox can explain which of its other services may be relevant to the watch. Knox Precious Metals (Pty) Ltd is a registered credit provider, NCR registration number NCRCP21466.
Your rights under the agreement
Before you sign, you should receive a pre-agreement statement and quotation setting out the interest, fees, charges, term and repayment terms. The credit agreement also covers early settlement, statements, the steps on default, when a pledged watch may be sold after default and how to complain. 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. Personal information you provide is used for the assessment and must be handled in line with the Protection of Personal Information Act.
What to do next
Confirm whether watches are currently accepted before you visit, then bring the watch with its box, papers, service records and your identity documents. 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.
