Loans Against Pledge

The Greek Postal Savings Bank provides low-interest rate loans by pledging valuables through the following pawnshops:

1. Athens Pawnshop (2-6 Pesmazoglou Str., tel.: +30 210 -3704777 / +30 210 -3704056 /+30 210 - 3704589 / +30 210 -3704590 /+30 210 - 3704072 /+30 210 - 3704661)
2. Thessaloniki Pawnshop (14 Aristotelous Str., tel.: +30 2310-282762)

Loan’s amount up to €5000
Interest rate: 10%
Charges: 2%

General information

• Pledgeable valuables can be gold or silver precious stones, clocks or cameras. Applicants must be of legal age.
• The pledged objects’ value estimation is made by the Organization’s specialist appraisers.
• Loans against pledge are issued for 3 months by application. Once the loan is signed, the settled interests must be paid in advance.
• Loans are issued up to the amount of €5.000, with 10% annual interest rate. There are 2% annual safe-keeping charges on the estimation amount.
• Gold and silver world prices are the basis for the pledged objects’ value estimation. These prices are fixed as follows:
  a. for 24-carat gold, €6.000 per kg.
  b. for silver, €120 per kg.

Procedure

1. The prospective customer submits the pledgeable objects to the appraiser in charge and signs the relevant application.
2. While signing the loan, the loanee collects a pledge-receipt with detailed description of the pledged objects. At the same time he receives the approved loan amount. After being appropriately packed, objects are kept to the high-security vault of the Greek Postal.
3. When the loan is completed, the loanee can either:
   a. Pay his/her loan off in full and collect the pledgeable objets.
   b. Renew his/her loan for 3 more quarters of a year at most.

In case of late repayment or renewal of the loan, the loan is considered to be in arrears, and charged with overdue interests. The overdue interest rate is fixed by decision of the Governor of the Bank of Greece. Today it is equivalent to 2,5% on the loan amount per year.

Auctions

• Non payment of the loan after one year since the loan's initial approval, will result in the loan being considered in default. These loans are sold in public auction under the Greek Postal Savings Bank’s supervision with no provision for prior notification to the debtor.
• The auctionable items are put in special show-cases in the pawnshop's hall 15 days before the day of the auction. The auction is conducted by the specialized committee of the Greek Postal Savings Bank which holds its sessions as follows:
• In Athens, every Sunday from 10.00 to 13.00
• In Thessaloniki, 2  Sundays per month from 10.00 to 13.00
• Auctions are held from October to June
• If there has been financial excess at the auction's closure, or certain objects have not been auctioned, these are all returned to the debtor, who is notified for collecting them promptly.

Balance due less than €3 is prescribed on the lapse of 5 years. Balances related to objects are not prescribed.

Interest rates are subject to the 0,6% charge by Law 128/75.