Pawning has been one of the oldest formats of getting quick cash. When a valuable item is pawned, one entrusts its security to the pawn broker with a legal contract pledging that you will repay the loan plus interest on a said time period. In the ‘80s, middle class and affluent Singaporeans associated pawn shop Singapore with poverty and frowned upon. People would assume you are a bad influencer (alcoholic, drugs-sniffer, gambling addict). However these days, pawn shops are getting more accepted to the public’s eye.
In a 21st century Singapore, one can pawn assets to pawn shop Singapore. Assets can comprise of gold ornaments, jewellery, branded signature bags or timepieces. The value of each asset is decided by the pawn shop’s appraisers.
One usually get up to 80% of the asset’s market value and never the full value of an item.
However should an item be suspected as stolen or acquired illegally, the pawn shop Singapore have the legal right to seize the asset and detain the customer whilst the authorities are being called.
One should never lose their pawn ticket as you have to ask the pawn broker to print a form of declaration, and having it filled and known to the notary of public or to a magistrate within 3 days. This is a very tedious process, so never ever lose your pawn ticket.
Pawn shops are generally more accepting to extend loans for their customers. They have very little to lose as your assets belongs to them. So bad credit ratings or weak income would not affect your status as a client.
As customers pawn their valuables, the appraiser will typically provide 60-80% of its market value. Customers are usually charged 1-1.5% interest monthly and this will increase for a 6 month period. And all you need is your valuables, there is no need for a proof of identity or monthly income to get loans from pawnbrokers. Whereas loans from banks or moneylenders, they require credit ratings or annual income documentation before letting you have a chance to talk about personal loans.
The minimum age for someone to pawn an item is 16 years old. This allows a very easy age entry which is why youths are finding it an easy way to get quick cash.
With youths being more informed these days, they are getting more open minded in how they handle their money. One might think that pawning items may seem undesirable, but youths walking into pawn shop Singapore are on the rise. To them, it is one fuss-free method to get fast cash for themselves and avoiding the paper work required as compared to bank loans or money lenders.
In summary, going to the pawn shop to hock one’s items is not illegal and it’s viewed as perfectly fine now as compared to the past. Pawn shops may actually be better especially if you are unsure that you could meet monthly repayments set out by banks or money lenders.