if you want to learn more about collateral loans from a legal point of view, please read some information we have put together for you below. Note that we provide transparent information for guidance purposes only. Your individual experience is subject to change. If you’d like to get the latest legal info, visit governmental websites and other relevant sources.

We encourage our users to check this section before they submit a loan application.

Are Collateral Loans Legal in the United States?
Collateral loans are legal in the United States. They are more widely known as Pawn loans. The practice of collateralized lending has been around for over 2,000 years. In fact, the queen of Spain utilized a collateralized loan in order to fund Christopher Columbus’ expedition to the new world.

In the United States, each state carries with it different applicable terms and conditions for term rates, lengths, and appraisal values. In the State of Florida, collateral loans can be indefinitely extended, and have a maximum monthly interest rate of 10% of the loan principal.

Who’s eligible for a personal loan?
Anyone with a government ID can apply for a collateral loan. DEFCO Loans complies with all local law enforcement identification requirements. DEFCO LOANS does not write loans on stolen property of any kind and will comply with all law enforcement requests.

What is the loan agreement?
DEFCO LOANS’ agreement is simple. It states that we (DEFCO LOANS), loan you (customer) a specific amount of money. In exchange for that loan, you agree to pay us back a fixed monthly interest rate in addition to your principal loan balance. Should you be unable to repay at any time, DEFCO Loans will utilize your collateral to recuperate the money originally extended to you.

For a complete copy of DEFCO LOAN’s loan agreement, please email us at and we will be happy to send over to you via email.

What makes a loan agreement complete?
A loan is considered completed, when you come in and pay any outstanding principal balance and interest fee balance and DEFCO LOANS hands you back your collateral property. 

How Do You Handle User Data?
We have established a Privacy Policy that covers this topic and how DEFCO LOANS utilizes user information on our website and across our company.

What can you tell me about rates and fees?
We make every effort possible to be transparent and up-to-date with our current rate offerings. Visit our Rates and Fees page to gain more insight into what our current monthly interest rates are.