Purses As Collateral

August 20, 2013 in Daily Bulletin

In Hong Kong if you need a loan, you could offer up your house or car as collateral, or, if you’d like, your handbag write Riva Gold and Chester Yung:

  • Yes Lady Finance Co. takes your handbag, has it appraised, and gives you a loan for 80% of the bag’s value.
  • The loan is processed and the cash handed over in less than half an hour.
  • Only bags from Gucci, Chanel, Hermès and Louis Vuitton are accepted. Prada purses just might make the cut.
  • The bag will be returned as long as the owner pays a monthly interest rate of 4%, and reclaims it within four months.
  • Loans start for as little as US$200, though loans in excess of $20,000 aren’t unheard of.

Read more about the practice, what it’s called, those who use it, how it was started, and how it works over here.

Source: The Wall Street Journal

Via: Marginal Revolution