The Municipal Credit gives you the possibility to deposit an object in exchange for a cash sum, this sum corresponds in principle to 50% of the value of the property or, at most, to 75%.
Any object of value can be deposited there (jewels, works of art, clothing, silverware, porcelain, etc.), if you can prove that it belongs to you.
The loan is granted for a period ranging from one week to one year maximum. After one year, if you wish to extend the credit, the amount of interest for the past year must be paid.
If you do not have the means to recover the pledged item, it will be auctioned off to repay the credit and the remainder will be returned to you, provided that if the sale made does not cover the entire amount of the credit, you will you are not liable for any amount. The loan can be refunded at any time. The objects are kept safely in chests.
How do you know if your item is valuable?
The object brought to the Municipal Credit will be examined and evaluated by the auctioneer on the spot, which can last an hour.
For low-value items, you will be asked for a piece of identification and proof of address. On the other hand for works of art, it will be necessary to provide an expertise and the act of property, donation, etc.
Be careful though, any object must be deposited by its owner. This avoids unfortunate situations, so it is not possible for a husband to deposit his wife’s jewels.
What you need to know ?
Some banks may grant a pawn loan and some deposits are made at a notary, it being specified that the interest for this type of loan will be lower than the Municipal Credit, but that, on the other hand, the notary fees remain the responsibility of the lender.
A loan refusal is often linked to the inability to authenticate an object, to prove its property or if it has no market value. In this case, the object is returned to its owner.
This form of loan is open to all, but is especially suitable for the less well-off, and is accessible to people stuck at the Banque de France. When the loan is granted, a contract is signed between the lender and the Municipal Credit. This sets the end date of the loan, as well as the amount borrowed. Check with your town hall to find out in which establishment you can apply for your pawnshop.