Diamonds: a great way of funding the holiday of a lifetime

The evenings are getting lighter and the days warmer (albeit very gradually!), so naturally I’ve started to get excited about summer. Admittedly, this may be a little premature, but one thing’s for sure – now is the perfect time to start planning your next holiday. If you want to have the trip of a lifetime this year, I think it’s worth finding ways you can pull out all the stops.

One option that’s come to my attention recently is securing a short-term loan against your diamond jewellery. Loans like this – which are usually called personal asset loans – typically run for around six months and can be applied for online through companies like borro.

At first, this might sound like quite a complex way to get hold of some extra funds for your holiday, but it’s actually pretty simple. Plus, it means that you can use the money in any way you like, such as:

• Increasing the duration of your holiday from a couple of weeks to a full month
• Staying in more luxurious accommodation
• Giving yourself more spending money so you can really make the most of your trip

Here’s a rundown of how taking out a loan against your diamonds works.

1) Application

As mentioned above, you can apply for personal asset loans online. The only information you’ll need to give at this point is your name, address, contact details and a brief description of your piece of jewellery, alongside how much you believe it to be worth. Someone will then get in touch with you to discuss the next steps.

2) Valuation

Provided your jewellery sounds suitable for securing a loan (i.e. it’s made from either platinum or gold and bears a hallmark), a valuation will be arranged. If you choose a company like borro, an expert will be on-hand to conduct a thorough valuation, which will be based on factors like:

• Current gold prices
• The quality of the metal
• The color, cut and clarity of the diamonds, and any other gemstones in the piece

3) Offer of contract

Presuming your diamonds are deemed suitable to secure a loan against, you’ll then be offered a loan – usually up to 70 per cent of the jewellery’s resale price. Typically, your loan, as well as any interest accrued, will need to be paid back within six months.

4) Accepting the contact

Provided you accept the terms of the contract, you can receive your money within as little as 24 hours. Just as a quick note, if you think that the contract isn’t for you, there is no fee to pay if you decide to turn it down.

5) Spending!

Once you’ve got the money, it’s yours to spend entirely as you please (unlike some bank loans, which can place restraints on what you use the funds for). If you’re planning the holiday of a lifetime, I recommend something like a round-the-world cruise, a few months in Australia or, if you’re going on honeymoon, a romantic month in the Maldives – but of course, the choice is entirely yours!

6) Repayment

You’ll arrange a repayment plan with your lender, but you won’t incur any extra fees if you decide you’d like to pay the sum back a little early – which is good news if you like being ultra-organized!

Of course, you’re probably wondering what happens if you can’t pay the loan back. In that situation, your diamond jewellery will be sold to cover your debt, as well as any extra costs your provider might face – like auction fees. If there’s any surplus money, this will be returned to you.