To say it has been a tough few years financially may be seen by some as an understatement. It started in 2007 at the beginning of the “financial crisis” and although the economy is in recovery we are still feeling the pinch! Borrowing until 2007 had been easy – too easy with low interest, high value loans, 120% LTV on mortgages and 0% credit card balance transfers. Millions of people racked up billions of pounds worth of debt. Then BOOM it all fell over. Many were left with debts they could barely afford the interest on let alone repayments. As interest on loans started to rise many high interest lenders arrived in the market place seizing the opportunity. Payday loans and home secured loans which charged astronomical rates of interest were the only way that some could get access to capital.
Then enter Rito Haldar and Ashwin Paramewaran. Seeing the high rates that people were being forced to pay they founded a company that seems to offer borrowers a better deal. Their company asset finance company unbolted.com lends against luxury assets at a maximum of 70% loan to value. With monthly interest rates of between 1.5% and 3% they offer more attractive rates than other high interest lenders who are charging monthly fees of between 5% and 10%. They have put a new contemporary slant on the traditional pawnbroker with a service that removes the stigma of being seen going into a high street pawnbroker and eases the associated fears that go with it..
Simple and Effective
It works by being simple, effective, discreet and easy to use. The applicant uploads a photograph of the luxury item they wish to borrow against to the site and then wait for one of the experienced team of valuers to approve their loan. Within approximately 3 hours a decision will be made and a loan offered to the customer. Once the item is received by the team at Unbolted the cash is then transferred to the borrowers account. “Would-be borrowers can apply for secured loans – at market leading rates – against anything from gold to fine art, antique cars to grand pianos, simply by uploading a picture of their item to Unbolted’s website” states co-founder Rito Haldar.
What’s also different about their service is that if the loan is repaid early the item is returned to the borrower – there are no penalties or redemption charges. If a borrower defaults on a loan the item will be sold at auction and any funds leftover are simply returned to the customer by bank transfer.
So it’s cheaper, friendlier, simpler to use and discreet. It takes away the stigma associated with pawnbrokers and lets the applicant use the service in the comfort and privacy of their own home. It seems a clever and user friendly way to unlock short term capital without charging exorbitant interest rates.