A Pawn Shop (Pawn Broker) is a type of business that provides loans to people in need of money urgently, but the debtor must have the resources in exchange for guarantee (mortgage) such as mobile phones, motorcycles, cars, jewelry or land title. Etc. 

Long history of Pawn Shop

The mortgage has a history of more than 3,000 years, first starting in China. By providing loans to farmers or small businesses. However, they also find records of the deposit. This pawn was from ancient Greece and throughout the Roman Empire as well.


Is a Pawn Shop considered legal business?

In accordance to the announcement of the Ministry of Economy and Finance (differ by countries), all businesses that receive collateral must apply for a permit or license. Right from the Ministry to run a business legally. Legal business is to be able to maintain social order. Avoid collateral business owners from robbery cases.


How does this business make a profit?

Mortgages can have an interest rate of between 2% and 5%, depending on the location. The borrower agrees to pay the contract for a certain period of time (daily or monthly).


What is the difference between this loan at pawn shop and at the bank?

Mortgages in private store are usually suitable for those who need money immediately because it It is fast, spending only a few hours with some documents, while bank loans may require multiple files. It may take between one day and one week for the documents to be processed. However, borrowers should check Be clear about the location and contract to avoid illegal business that could cause you to lose your assets.