The pawnbroker is a loan secured by a valuable object (jewelry, painting, etc.). It is different from the sale with the possibility of redemption. To apply for a pawnshop, you must bring your object to a Municipal Credit. After appraising the object, the establishment can lend you an amount between 50% and 70% of its value. You must sign a loan contract that specifies the amounts you will have to repay. If you do not refund, the item will be sold.
What Is It About?
In this case, you can apply for a pawnshop. There are no means-tested conditions to access it. You will be able to obtain a loan in exchange for the deposit of an object of value which will serve as collateral. We are talking of pledged object. You remain the owner of the object. The property subject to a pawnshop may be a piece of jewelry, a watch, a painting, a musical instrument or any other object of value. If you do not repay your loan, the pledged item may be auctioned. If you have low income, it is also possible to get a micro loan. Want to know How much pawn shops charge? The options are there for you.
To obtain a pawnshop, you must go to a municipal establishment. Only municipal offers this type of loan. You cannot take the procedure with your usual bank. You will need to present the following:
- Proof of address
- Object that you want to provide as collateral.
The value of this item is assessed by an auctioneer. In exchange for depositing this item, you can immediately get a loan. If the loan is granted, you will have a contract to complete and you will receive the agreed sum in exchange for the item. If the sum exceeds $ 3,000, it will be paid by check or bank transfer. If the loan is refused or if you refuse the contract, the object is returned to you for certain items, you may need proof of ownership (an invoice in your name, for example). The demand is high for the pawn shops.
Amount of the Loan
The loan you can get is depending on the item you are depositing. Its amount is generally between 50% and 70% of the estimated value of the object.
The interest rate varies depending on the amount borrowed. You may also be billed for the custody of the deposited object. The interest rate and the cost of childcare are specified in the contract.
The pledge loan must be the subject of a written contract between the borrower and the Municipal Credit.
Reimbursement of the sum or sale of the pledged property
You have 2 years to repay your loan. However, your contract may provide for a shorter term. You can refund in cash or in kind (that is, by delivering an item).
You can repay your loan
If you repay the amount loaned to you and the interest within the time limit, you can get your property back. This repayment can be made at any time, from the date of obtaining the loan and the end of the period provided for in the contract.