WHAT IS PLEDGE CREDIT?

Pledge credit is a financing facility which, unlike other forms of loan, is distinguished by the simplicity of its application and the speed of credit disbursement, which is immediate. This is because pledge credit is not based on the customer’s credit rating, but on the value of the asset pledged.

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ON THE ORIGINS OF PLEDGE CREDIT

COMPASSIONATE FUNDS

The first Compassionate Fund was established in Perugia in 1462 on the initiative of the Catholic Church. It then spread rapidly to numerous other cities, also with a view to countering the practice of usury by guaranteeing faster and more extensive access to credit.

The rules that regulate Compassionate Funds were dictated by Pope Leo X on 4 May 1515, through the Papal Bull Inter Multiplices produced in the Fifth Council of the Lateran, which represented the first official acknowledgement of the lending activity practised by the Funds, insofar as it legitimised them to apply a modest sum to cover their expenses.

In the modern era, the Compassionate Funds started to evolve and to become actual Savings Banks. However, this process was interrupted by the arrival of Napoleon in Italy (1796) who, in the name of the right of conquest, appropriated their assets as well as those of all religious orders. In 1807, following the Restoration, the Funds once again obtained their independence, although the development of financial services linked to social commitment was already in the hands of the Savings Banks.

This is one of the reasons why, Italian Law no. 753 of 3 August 1862 transformed Compassionate Funds into Charitable Funds, changing their nature and the way they operated. The promulgation of Italian Law no. 5546 of 15 July 1888 and no. 6672 of 17 July 1890 on Savings Banks, further fine-tuned by Italian Law no. 169 of 4 May 1898, acknowledges that the Funds played a dual role, as charitable entities and credit institutions.

Through Italian Law no. 1396 of 14 June 1923 and later provisions, up until the promulgation of the banking law of 1936, the Legislator pursued the objective of encouraging, on one hand, mergers between savings banks and Compassionate funds and on the other, to encompass all funds within the regulations envisaged for credit institutions. The legislative process to give compassionate funds their own, independent legislative framework was completed with the emanation of Italian Law 745 of 10 May 1938 and the relative implementing regulation contained in Italian Royal Decree 1279 of 25 May 1939, establishing, inter alia, the minimum requirements for share capital or reserves, which had to be set in place, the structure of the management bodies and the transactions permitted, as well as giving specific instructions concerning the special characteristics of pledge credit transactions.

Nowadays, pledge credit is offered in almost all Italian cities, mostly by banks. It has therefore become a fully-fledged banking service which provides a fast and simple way to obtain small amounts of cash against a pledged asset. Over time, the idea of a loan to sustain the classes of the population in most difficulty has been superseded, and it has been transformed into a regular credit service.

WHY CHOOSE PRONTOPEGNO.

ProntoPegno enables you to obtain a loan in a safe, simple and fast way by securing it with an asset in gold.

Unlike other kinds of credit, this formula is simpler, because no equity assessment is required, it is faster, because you immediately receive a sum of money proportional to the value of the asset in gold used to secure it.

Thanks to ProntoPegno, you can obtain a reasonable valuation of your asset, choose the term of the loan, even for just 3 months, all with a high degree of confidentiality, by making an appointment at Branches:

To find out all details and you are able to read Italian, please consult Information Sheet and the Regulations.