In a pawn shop, borrowers can get a loan in an emergency with comparatively unbureaucratic information if they deposit material security in return. This could be jewelry, a car, or electronic items. They are valued by the pawnshop and then borrowed with a certain percentage.
If you bring valuables to the pawnshop, you do not need further loan collateral. However, the moneylender may sell the attached property if not repay the loan on time. Therefore, you should inform yourself carefully about the general guidelines and characteristics of the pawnshop in advance of borrowing. You can learn more (เรียนรู้เพิ่ม which is the term in Thai) here on the guidelines to follow
How Does A Pawnshop Work?
Regardless of where you go to the pawnshop, the process of granting credit and subsequent repayment is almost always the same:
You can borrow valuables such as jewelry, vehicles, or watches at the pawnshop.
Employees at the pawnshop evaluate the current sales value of the items. A percentage deposit value is then determined depending on the type of product. Jewelry and watches are often loaned at around 50 percent of the sales price; it is up to 80 percent for vehicles.
You will receive the money directly in cash without depositing any additional securities. In return, the loan initially withholds the seized item.
The law stipulates that you have at least three months to transfer the loan amount, including fees and interest, back to the pawnshop or bring it back in cash.
If the pledge is released, the valuable item will be returned to you in full.
Typical terms of such pawn loans are three to six months, the lower limit set by law. When exactly you pay off the debt is usually not contractually regulated. Borrowers pay back the loan amount, including the deposit fee and interest in a single installment, and most pawn shops have the option of paying the debt (working) daily.
If you cannot repay the loan amount within the loan period, you can ask many providers for a 30-day extension. If this also expires, the pawnshop may sell the valuable item. This usually takes place in the context of a public auction so that the debtor would theoretically have the opportunity to bid for the item again at a later point in time.