Traditionally, banks rely on an amalgamation of seemingly unrelated factors to determine an interest rate for a loan. The fed fund rate, investor demand for US treasury notes and bonds, industry standards, banking industry standards and a borrower’s credit score all play a role in determining the interest rate for a traditional bank loan. Diamond Banc is here to simplify this complex, convoluted system.
We never examine your credit score or verify employment. Moreover, we are not tied down by the regulations and red tape restricting traditional banks. Instead, our interest rates are simply based on the value of your collateral items. The interest rate on many of our loans can be as low as 3%.
How Are Your Interest Rates Calculated?
Our interest rates are based on the LTV, or “loan to value” ratio. This figure is determined by dividing the amount borrowed by the value of your items. The difference between these two figures may vary dramatically depending on the situation and the value of your item. The value for high-end jewelry may far exceed the amount you were looking to borrow. Since the borrower requires less than the value of the item, your interest rate would be lower.
For example, if a borrower requests a $5,000 loan, and Diamond Banc appraises their diamond at $20,000, their interest rate will be lower than someone who borrows $20,000 against the same necklace.
Why Does LTV Rate Affect Interest Rate?
When collateral is worth more than the loan amount, the more secure the loan will be. Likewise, the lower the LTV, the lower Diamond Banc’s risk. If we loaned $10,000 on a necklace worth $10,000, Diamond Banc is more likely to lose money if a loan is not repaid. For that reason, if a borrower takes out a loan smaller than our full offer, the interest rate is lower.
At Diamond Banc, We Want You to Retain Ownership of Your Jewelry
Diamond Banc will tailor your loan to fit your needs. We take the risk out of the equation and are dedicated to meeting your needs. That is why we are the #1 lender in South Florida.
Do you have any other questions about how Diamond Banc calculates interest rates? Call or email and a Diamond Banc jewelry expert will get back to you with answers!
Get started today from the privacy of your own home. Our easy to use forms will guide you through the process. Add a clear picture and within 24 hours you will be provided with a quote at Diamondbanc.com in Boca Raton or make an appointment in our convenient and secure office today at 561-988-8464.
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