Don’t Pawn Sentimental Value for Cash Just Yet

The pandemic has greatly affected all of us. Some of us more than others, certainly. Our go-to place for these times? Pawnshops.

When the going gets tough it’s mom’s jewelry that usually have to go first. That or dad’s wrist watch… or with pawnshops’ ever expanding list of Other Pawnable Items (OPI), little John’s prized gadgets aren’t out of the question too.

What if we tell you though that none of these has to go? The jewelry gets to stay. The watch remains on its rightful wrist and you would not have to think of a way to appease little John after taking his gaming device. In exchange for keeping these, the only thing that has to go is something that is sitting in the dark recesses of your dashboard, almost untouched. Something that does not really have much of a sentimental value to you. That’s right, we are talking about pawning your ORCR.

What are you talking about?

If this is your first time hearing of it, we are talking about a loan program called Sangla ORCR. Simply put, it is a program where a bank or financing company loans you a certain amount of money in exchange for your ORCR which they will temporarily hold on to until the loan is settled.

Yes, while it is considered a process of “pawning” it is also considered as a loan. A “Secured Loan” to be precise. Secured Loans are programs in which the provider is assured of the return of the credit that they lend to a borrower plus the interest. As opposed of course to “Unsecured Loan” where the provider is at risk of the loan being defaulted.

Process

Sangla ORCR works just like any other pawning process, only with a few steps and things that one must keep in mind:

Similarities with Pawning

1. You have to bring the item/s for checking and appraisal.

Much like pawning, the provider will have to see the items for themselves and identify the item’s or unit’s value. Sangla ORCR providers will check the ORCR and the car alike for their legitimacy and their condition, respectively.

2. Approval amount will be determined by the item’s value.

Naturally. This makes its approval range seem a bit limited and unlimited at the same time. Limited in the sense that you will not get more than your item’s or unit’s value or even an amount that is significantly lower than the appraised value. Unlimited in the sense that there is no fixed ceiling amount. If you have a million-peso car, or a million-peso accessory for pawnshops, then it’s a million that you will get or close to it, at least.

3. Defaulting means loss of ownership

As already mentioned, Sangla ORCR is a secured loan. Much like pawning, not settling an unsecured loan means you will lose ownership of your pawned item/unit. In Sangla ORCR’s case, this means the provider will get to keep the registration and eventually, the car itself will be taken as well. A lot of providers are open for negotiations though so always make sure to keep your lines of communications open as it is better to negotiate a loan term when you are deemed cooperative than when you are proven to be a headache for their collections team.

Differences

1. Requirements

Pawnbrokers will typically only require you to show some proof of identification and the proof of ownership of the item if applicable. With Sangla ORCR, you will have to submit a few more items; proof of billing and proof of income. A bit more demanding but nothing complicated. Proof of billing is almost always readily available and proof of income is only one request away, that is only  if you have not kept your payslips of the past few months which would make the process a lot faster and less hassle.

2. The valued item is not going anywhere

Perhaps the biggest difference between pawning just about any item and pawning your ORCR is that it’s only the proof of ownership that will be temporarily taken. The unit that really matters – the car itself – you will still be able to see each morning and use to continue your day to day life. Everything will be as usual except for your dashboard being a teensy bit lighter and your pockets a bit more stuffed.

More about Sangla ORCR

The information that you need to know about this loan program does not stop with its comparison with pawning. As with all loan programs, details such as loan amount, interest rates, and more, are crucial. So here goes:

Loan Amount

As mentioned, this is dependent on the unit’s value. To calculate for the potential amount that you may be approved with, simply subtract 10% from the original price of your vehicle. The number of times that you will have to subtract 10% should be equivalent to the car’s age. For example, if the original price is 1 million, and the car’s age is 3, you will have to subtract 10% from the original price for three times. The resulting amount will then be 729,000.

After this, compute for the 80-90% of the resulting amount and that will be the potential cash that your loan provider may approve you with.

Interest Rates

Interest rates can vary from one provider to another especially between banks and private financing companies but to give you an idea, the interest rates for one of the most prominent providers of Sangla ORCR program, Global Dominion Financing Inc., (GDFI) is 1.25%.

Payment Term

Like with many loan products (and unlike pawning), the payment term for Sangla ORCR is 12 to 36 months.

Processing Time

Considering that the requirements are minimal, you wouldn’t really have to spend much time collecting the necessary requirements so most of the time for the application will be spent for the provider’s processing. Fret not though as secured loans are relatively faster compared with unsecured loans especially if your provider is a private loan company. Within 3 business days, the provider will have already issued an approval (or otherwise). In addition to the fact that there are only a few papers that they will have to process, there are also only two things that they will need to take into consideration for a decision; the unit’s condition and your capacity to pay. No credit checking, no need to check your employer details, no extensive background check necessary.

What vehicles are eligible?

Almost any vehicle will do. SUV’s. Sedans. Trucks. Be they PUV’s or for private use,  as long as you own the unit, you are in possession of its registration, and it’s fully-paid, then it’s good. However, 2-wheelers are usually not eligible. Most providers do not accept motorcycles, ALTHOUGH if the unit is used as a tricycle, then don’t you worry as some providers, like the aforementioned GDFI, will still accept it.