The principle of pawnshop operation has not changed in hundreds of years. In this institution, you can get a loan, leaving any valuable thing as collateral. After some time, the client of the pawnshop returns for the thing, pays the debt and interest for using the loan.
How to use a pawnshop?
The interest on a pawn loan is very high, so it is worth resorting to it only if the money is needed for a short time. It makes no sense to go to a pawnshop if money may not appear in the future, in this case it is easier to sell the item, take the money and not even think about interest.
In addition to the valuable thing that you are going to leave as a pledge, you need to bring your passport to the pawnshop; other identity cards will not work.
Modern pawnshops accept on bail not only jewelry, but also household appliances, furs, furniture, in some cases clothes or shoes. To get an acceptable amount on the security of any item, it must be in good condition. Preferably in its original packaging.
First of all, a specialist in a pawnshop will evaluate the valuable item brought, based on the degree of wear, sample, brand of the manufacturer, the average price of a similar item in trade, and so on. After the announcement of the amount that the pawnshop is ready to give you on the security of this thing, you will be offered to conclude an agreement for the period you need. Usually a pawnshop offers a loan amount that does not exceed forty percent of the market value of the thing. If it seems to you that the amount is too small, and the interest is high, you can look for alternative pawnshops, since there are now quite a few of them even in small towns.
Really high interest rates
Interest rates at pawnshops can vary, usually ranging from one to four percent per day. This, incidentally, means that if your item stays in the pawnshop for three months, you will have to pay twice as much to return it.
After accepting the conditions, your thing will be moved to the pawnshop's warehouse, and you will be given money and a security ticket. It must contain the details of the pawnshop, a description of the pledged item, the loan amount, the assessment amount, your passport details, the date and terms of the loan and, of course, the interest rate. The security ticket must be kept until it is returned for the security deposit. However, if you lose your security ticket, it's okay - your item will be returned to you after showing your passport.
If by the date indicated in the security ticket you do not have the entire amount on hand, you can pay the interest and renew the contract. If you forgot to show up at the pawnshop on the right day, then a week later your mailbox will contain an invitation to visit the pawnshop to pay the loan fee. It should be noted that for each day overdue, you will have to pay double interest.
If you decide just not to return for your valuable thing, the pawnshop will keep it for another grace month, during which you can fulfill your debt obligations (subject to double interest). Then your item will become the property of the pawnshop.
