Can Watches Be Used As Collateral?


Luxury watches have become a style statement for all of us, especially watch lovers. Be it the craze for a new Patek Philippe or a finely crafted Rolex – they are excellent gifts, especially for a man. Wearing an expensive watch is simply a way to express your personality, aura, and confidence. 

Rolex watch owners are super confident when they take their watch out in public, and why shouldn’t they be? Watches like Rolex are not only an expensive investment but also a way to showcase your hard work and growth. Yes, it is rightly said that luxury watches are an excellent investment as they can get you a significant amount of money real quick!

What are collateral loans on luxury watches?

The phrase Rolex loans have become quite common in the marketplace where luxury watch resellers readily provide funds to watch owners, given that you put your watch forward as collateral for the loan. How wonderful is it to not part ways with your precious timepiece and still get the desired amount instantly, right? A loan on a watch is similar to any other collateral-based loan procedure that allows you to acquire funds by keeping something valuable in exchange for a certain period. When people need hard cash urgently and cannot find a workaround, the only solution that comes up is to get their Rolex evaluated at a luxury watch reseller and get a fair deal on the collateral loan. 

Rolex or any luxury watch brand could be used as a security item because these are valuable assets that one can easily convert into cash; one can redeem it in money via a reseller in the vicinity and get a significant amount just like that. Of course, the conditions to acquire fair and just value for your Rolex are – Your watch must be in perfect and preserved working condition.

  • You must get its value estimated from a trusted watch reseller or a credible marketplace to ensure you get the best price. You must have all the genuine paperwork of your luxury watch to prove its credibility. 

Who can get collateral loans on luxury watches? Anyone with a genuine luxury watch can look for a Rolex loan to suffice their instant cash requirements. For instance, if you run a small business or are a trader and need to pay for business items or investments respectively, you can conveniently opt for a collateral-bound loan on watch. In addition, it allows you not to give away the ownership of your precious Rolex and simultaneously pay off the relevant expenses. 

What are the criteria to get a loan on luxury watches?

The primary criteria for the loan amount are determined based on the valuation of a luxury watch, and the latter majorly rely on these factors: The condition of your luxury watch must qualify the standards set by reselling marketplace. The dial, watchband, and functionality are precisely accessed to establish a valuation.

  • The lender will provide a higher loan value if your luxury watch is a rare piece, which means that you must undoubtedly preserve the paperwork defining its brand, model, genuineness, etc., to make it collateral for a loan. And lastly, a luxury watch must pass the evaluation test required to determine whether it is a genuine product or a counterfeit. Since faux watches have a large marketplace, some try to sneak in their fake watches and get loan approval fraudulently. 

Valuation process of luxury watches

Knowing how much your Rolex is worth in the market is significantly imperative to get the best deal on a collateral loan. To apply for a Rolex loan, one must have a fair idea in mind about the current pricing of the watch. Along with that, numerous points sum up the valuation process of a Rolex:

  1. Model/serial number is essential – You must possess the model and a serial number of your luxury watch to prove its genuineness in the marketplace. With that being handy, the reseller can distinguish if your Rolex is a genuine product or an imitation. One can find the model number and relevant details both on the watch’s display and the original product’s paperwork.
  2. Material of the watch – Next up, the better the condition of your Rolex is, the more money you can estimate. Speaking of, if your Rolex has fancy platinum or gold dial, then you’re lucky to get much better deals. The material and condition of the watch determine the loan amount you can get if you keep it as collateral.
  3. Chances of being a rare product – The age of a luxury watch is simultaneously vital too because if the reseller can prove that a given watch is rare and vintage, then the loan price shoots up, given that the watch might have a history attached to it. In addition, you can still stand a chance for colossal loan approval if your Rolex is a vintage product and is a part of a collectible group of timepieces. 

Is there a minimum and maximum amount of money you can get on a collateral loan?

Typically, the maximum and minimum loan amount that one can get against collateral varies from reseller to reseller, as well as the marketplace that you’re visiting. Moreover, the loan amount given is usually lower than the collateral value. If the borrower fails to repay the loan, you can redeem the asset to retrieve the loan amount. In this way, the lender always remains in a profitable position. 


Diamond Banc is one such platform where you can get instant cash against your precious luxury watch and make the most of collateral loans to fulfil your immediate monetary needs. Our experts prominently focus on evaluating the actual value of your watch to give you the best deal, especially when you yearn for it the most. To initiate a loan procedure, visit our website Diamond Banc to know more!

Leave a Reply

Your email address will not be published. Required fields are marked *