There are some types of the pledge. These are four of the most common:
- jewelry pledge
- Rural pledge
- Industrial and mercantile pledge
- Vehicle pledge
Below, see each one.
- Pledge Of Jewelry
This pledge is usually made not to pay off debts but to guarantee a loan. This way, credit is cheaper – that is, interest rates are lower, set at 2.1% per month. To hire, it is necessary to go to one of the registered agencies with the goods that will be pledged and present the documentation. An evaluation will be carried out there to determine the value of the pieces. A deadline is agreed upon, and, at the end of it, they are returned by compliance – if payment is not made, the debtor has 30 days to settle the debt. Otherwise, the goods go to auction.
The following can be pledged:
- Jewelry (made of gold, silver, platinum, diamond, or pearl);
After the evaluation, the money is released on the spot. The authorized loan varies – in some cases, it can correspond to around 85% of the value of the piece pledged or up to 100% for those with a salary account at Caixa itself. In others, the discrepancy between appraisal and credit is greater. Each person must evaluate the cost-benefit before operating.
- Rural Pledge
The rural pledge can be agricultural or livestock. In the agricultural pledge, items such as crops, stored fruits, cut firewood, charcoal, and production machinery or instruments can be offered as collateral. Its maximum term is three years, renewable once for the same period. In the livestock pledge, animals used in pastoral, agricultural, or dairy activities are included in the guarantee. In this case, the maximum term (also extendable only once) is four years. In both cases, the creditor has the right to verify and inspect the condition of the pledged assets.
- Industrial And Commercial Pledge
In this case, the pledged goods are industrial instruments, such as machines, appliances, and animals destined for industrializing meat, salt, raw materials, and industrialized products. As in the case of rural pawns, the creditor has the right to verify the condition of the assets.
- Pledge Of Vehicles
Any vehicle can be pledged as long as it is insured or you can pledge a car on finance (รับจำนำรถยนต์ติดไฟแนนซ์ which is the term in Thai). The maximum term for this type of pledge is two years, with an extension of another two. Again, in this case, the lender can carry out checks to ensure the vehicle’s condition.