A loan at a pawnshop is a loan that is granted against bonds, shares or securities. Objects of a utilitarian nature can also be used as security – we are talking about items such as electronic equipment, jewelry or works of art.
A loan at a pawnshop – the most important information
The most important characteristic of a loan at a pawnshop is that it has a short repayment period. As a rule, they are granted for a period of 7 to 30 days. At that time, the mortgage is in the pawnshop, but it is not yet its property. The important information is that the pawnshop is obliged to store the pledged things in such a way that after repayment of the loan they reach the customer intact. Of course, the pledged items must have a certain value in order to be considered as a form of security. For example, electronic equipment, works of art or jewelry can be considered as collateral.
Before you get a loan from a pawnshop, you must first sign the appropriate contract. The following information must be included in such a document:
- basic customer information,
- loan amount granted to the client,
- type of lien
- an accurate description of the object pledged,
- loan repayment date,
- loan repayment form,
- list of fees related to debt service,
- value of the pledge,
- signatures of the client and the pawnbroker’s representative.
In a situation where the customer fails to pay the debt within the deadline specified in the contract or fails to extend the repayment deadline, the pledge becomes the pawnbroker property and goes on sale. As current regulations indicate, information about a loan from a pawnshop cannot be given even to members of our immediate family. The only exception to this is the consent of the lien owner.
It is worth remembering that the amount of the loan received cannot be higher than the maximum value of the pledge. The repayment date of the loan received and any costs associated with it are included in the contract between the pawnshop and the customer. The amount of commission depends on the loan amount, repayment date and value of the pledge. The borrower and any other person indicated by him may return the debt. If we repay the liability, we must repay the borrowed amount together with the commission by the date indicated in the contract.
Another important information is that a lombard loan can also be obtained from a bank. Vouchers and PKO books or blocking funds on the account will be used to secure such a loan. Banks also accept all jewelry, gold coins.
What can you pawn at the pawnshop?
In the pawnshop, you can pawn any objects you choose. The only condition is that they have a certain value. Common items set as pawnshops include:
- household appliances,
- electronic equipment – laptops, computers, smartphones, tablets,
- family souvenirs of high value,
- other works of art.