Pawnshop is known as a loan provider with relatively lighter requirements and a short process. Therefore, it is not surprising that even though a variety of online loans have sprung up, Pawnshop loan services are still in high demand.
Moreover, Pawnshop is an official financial institution managed by the government, so that borrowers do not have to worry about being caught in a bulging loan service.
As we know, Pawnshop implements a pawning system of goods to get some cash. The goods will become collateral, as well as a loan replacement if we are unable to pay. But, if the loan can be paid off smoothly, the mortgaged goods will become ours again.
Guarantees and Pawnshop requirements to get a loan
1. Motorized vehicles
To get a large number of quick loans, motor vehicles are the assets most often chosen as collateral. Fortunately, motorized vehicles are not mortgaged in physical form, but rather the BPKB letter.
That way, even if it is used as collateral, the vehicle can still be used to support your daily activities.
However, not all motorized vehicles can be used as collateral. There are several criteria for motorized vehicles, both cars and motorcycles, to be mortgaged.
To pawn the car, the maximum age of the vehicle is 10 years. Meanwhile, for motorcycles, the year of production must be within the last five years and be registered in the brands of general manufacturers, such as Yamaha, Honda, Suzuki, and others.
One type of Pawnshop loan that can be obtained by guaranteeing a motorized vehicle is Kreasi, a micro-credit service from Pawnshop . The creation is aimed at developing micro, small and medium enterprises (MSMEs) with a loan ceiling of up to $400 million.
Gold, both in the form of jewelry and gold bars, was accepted by Pawnshop as collateral. Because, gold has a high value with prices that tend to be stable.
In general, the requirements needed for mortgaging gold in Pawnshop are certificates and memorandum of purchase of gold. Other Pawnshop requirements depend on the financing services of the Pawnshop being taken.
3. Electronic Goods
Borrowing money at Pawnshop can also be done by mortgaging electronic goods, such as televisions, refrigerators, radios, and other electronic devices.
To be used as collateral, the electronic goods must have a maximum production period of one year. Of course, the condition of the goods must also be in good condition, not deformed, and not damaged. The borrower also needs to include a purchase receipt and guarantee card (if there is still one).
Meanwhile, other requirements depend on the type of goods guaranteed. For example, television must take the form of an LCD, adjusting current consumer trends. The more new and better condition of pawned electronic goods, the greater the chance of getting a high ceiling loan.
Various gadgets, ranging from smartphones to laptops can also be used as collateral. The main requirement, the gadget is in good condition, without damage, and not more than one year of production.
To apply for a Pawn Flexibility loan, you only need to hand over the gadget as collateral, a KTP or valid identity, and sign a credit card.
Perhaps, many do not know that even a camera can be used as a pawn item. Generally, cameras that can be used as collateral for DSLR type and have a maximum production period of the past year. In addition, you need to include a purchase receipt to submit a loan.
Some loan products that can be submitted by guaranteeing the camera are KCA and Pawn Flex from Pawnshop .
In general, items that can be pawned are items that are not easily subject to price drops drastically on the market. Even so, it does not mean collateral must be classified as a luxury item.
In addition, many thought that a house certificate could be mortgaged at Pawnshop. In fact, according to information obtained from the Friends of Pawnshop website, to date home certificates cannot be used as collateral in Pawnshop.
How to redeem collateral at Pawnshop
After the loan is paid off, you can redeem the pawned goods for the duration of the loan. However, if you do not have the funds to redeem goods after they are due, you can extend the loan period for the next 120 days, by paying only the interest.
If you do not redeem or extend the loan period, then Pawnshop has the right to auction off the pawn item. Usually, the deadline until the auction time has been stated on the pledge or credit proof.
But, Pawnshop generally still will contact the relevant customer first to inform the status of the collateral. If there is no response or request for time to pay off tolerance, then the collateral is fully the right of Pawnshop and Pawnshop has the right to auction the item.
Pawnshop loan ceiling, interest, and loan tenure
Basically, the pawning system applies a lease with a loan system. So, in addition to interest or rental capital, loans at Pawnshop also incur administrative costs. The amount starts from $2 thousand to $125 thousand.
There are also types of Pawnshop loans that charge an administration fee of 1 percent of the loan money. The greater the loan ceiling, the greater the administrative costs. Meanwhile, loan interest starts from 0.75 percent per 15 days.
The loan ceiling offered by Pawnshop starts from USD 50 thousand to USD 500 million, with loan tenors ranging from 1 day to 36 months.
Cream Bank as an alternative to Pawnshop loans
Pawnshop offers loan services on relatively mild terms. Therefore, the mortgage of goods remains a mainstay for some people. Unfortunately, Pawnshop loan interest is quite high.
As a comparison, generally KTA loans from banks set interest ranging from 0.59 to 0.99 per month. If calculated, with the same loan ceiling, the interest expense imposed by a Pawnshop loan can be twice as high as a Cream Bank loan.
In addition, the pawn system requires borrowers to visit the nearest Pawnshop office. This is somewhat inefficient, especially when compared to applying for a Cream Bank loan that can be done online.