The Process of a Pawn Loan
Pawn shops have been helping families and the community with an alternative cash resource. Pawn shops let customers borrow money using valuable items as collateral. The whole process gets money quickly to the customer, so bills don’t go unpaid and financial emergencies can be rectified quickly.
Collateral means that something pledged as security for repayment of a loan is forfeited in the event of a default.
The process is easy:
Bring in an item of value.
Pawnbroker offers a loan based on a percentage of the item’s estimated resale value.
The pawnbroker then keeps the item until the customer repays the loan with interest and any additional fees that may apply.
Loan Amount:
Pawn shops will loan anywhere from $20 dollars to $500,000, depending on the shop. The professional team at each pawn shop bases pawn loan amounts on the value of your item—its current appraised value, its current condition, and their ability to sell the item.
Pawnbrokers use all the research tools they have to determine an item’s value and get you the most money possible. The amount of the loan offered is based on the wholesale, resale/secondhand value of the item, not the new price.