You urgently need a small amount, and there is no one to borrow from. You can't get a credit card in a couple of hours, and the high interest rates of microfinance organizations are scary. If you have valuable property, you can quickly get money for it at a pawnshop. Let's figure out how to properly use the services of pawnshops and not lose the deposit.
Pawnshops have been working with borrowers for a long time. Using their services is convenient and not too risky. Money is given out immediately, only a passport is needed from the documents. No calls from collectors, no lawsuits and no courts. The maximum loss is the deposit itself. The pawnshop will simply sell it if the debt is not paid off on time.
Before contacting a pawnshop, make sure it works legally. Check it in the register of the Bank, in the tab "Having no restrictions in activity". If the organization is not in it, it has no right to issue loans and it is better not to apply to it.
How to get a loan at a pawnshop?
The security ticket must necessarily contain: the amount of the loan, the dates of receipt and repayment of the loan, the term for its provision, the interest rate, the name and description of the pledged item, the amount of its assessment.
What can be taken to a pawnshop?
Any valuable property, except real estate, can be pledged into a pawnshop - from a gold ring to a car. Pawnshops will not accept apartments, summer cottages and other real estate on bail, they are even prohibited from advertising such services.
For how long can you take a loan?
A loan at a pawnshop is issued for a period not exceeding a year. But of course, it's best to pay off as soon as possible. The rates here are significantly lower than in microfinance organizations. And yet it is much higher than in banks.
If you need an amount for a long time, it is better to take a bank loan or get a credit card. But it is important to carefully consider whether you can make payments on time. Indeed, in the event of delays, you run the risk of not just ruining your credit history, but ending up in a debt hole. Loans in pawnshops threaten only with the loss of collateral.
What if I can't repay the debt?
The pawnshop will sell your pledged property no earlier than a month after the end of the contract. Moreover, expensive things, which were valued at more than 300,000 rubles, will be sold at a public auction. Even if the pawnshop earns less money from the sale than it lent you, the loan will be considered repaid.
If the pawnshop is able to sell your item at a higher price than the amount of your loan and the interest that ran up to the day of sale, then you can demand the pawnshop to return the difference to you. Such a demand can be sent to a pawnshop within three years from the date of the sale of the pledge.
What if the pawnshop loses or steals my dear ring?
The pawnshop is responsible for the safety of the pledged property. He must have insurance that protects all of the clients' belongings from the risk of damage or loss. If something happens to your value, you will be compensated.
At the same time, you are not obliged to pay for storage or insurance - all costs are borne by the pawnshop.
Can my property be sold before I repay the loan?
The pawnshop has the right to sell the pledged property only if the loan is not repaid on time. And he can do this no earlier than a month after the delay in payment of the debt.
Is it possible to invest in a pawnshop at interest - like in a bank?
You can't. Pawnshops have the right to attract money only from their founders, but not other citizens.
Can a pawnshop be an individual entrepreneur?
No, according to the law, only a legal entity can be a pawnshop. Individuals and individual entrepreneurs are not entitled to offer such services.
How not to face scammers?
Find the selected pawnshop in the register of the Bank, in the tab "Having no restrictions in activity" and check the data from it with the documents of the organization: name, contact information, official website, legal address.
Thrift stores are often disguised as pawnshops. They buy property from people "with the right to buy back". In reality, such an organization can sell the “pledge” at any time, since it is not legally a pledge. A real pawnshop is obliged to issue a security ticket to the borrower.
If, instead of a security ticket, you are given to sign a commission agreement, sale and purchase agreement or any other document, then you have not applied to a pawnshop.
In addition, fraudsters sometimes act under the guise of pawnshops who lure money out of people. They offer to invest savings at a high interest rate - ostensibly to earn money by issuing loans. In fact, according to the law, pawnshops are not entitled to raise money from people who are not their owners or shareholders.
Pros and cons of pawnshops
+ Simplicity. To obtain a loan, you only need a passport and a valuable thing.
+ Speed. You can get money right away. Unlike bank offices, pawnshops work until 23:00.
+ Low risk. You are not threatened with calls and visits from collectors, lawsuits and bad credit history.
- Percent. Pawnshops issue loans at a fairly high interest rate.
The Bank quarterly publishes the average market value of the total cost of the loan for pawnshops on its official website. The CPM under the contract should not exceed this value by more than a third.
Pawnshops have been working with borrowers for a long time. Using their services is convenient and not too risky. Money is given out immediately, only a passport is needed from the documents. No calls from collectors, no lawsuits and no courts. The maximum loss is the deposit itself. The pawnshop will simply sell it if the debt is not paid off on time.
Before contacting a pawnshop, make sure it works legally. Check it in the register of the Bank, in the tab "Having no restrictions in activity". If the organization is not in it, it has no right to issue loans and it is better not to apply to it.
How to get a loan at a pawnshop?
- You bring valuable property to the pawnshop.
- The pawnshop estimates its value free of charge and gives you money within this amount.
- You receive two documents: a security ticket and the individual terms of the consumer loan agreement (in tabular form). You should also be familiarized with the general terms of the consumer loan agreement.
The security ticket must necessarily contain: the amount of the loan, the dates of receipt and repayment of the loan, the term for its provision, the interest rate, the name and description of the pledged item, the amount of its assessment.
- To get the pledged property back, you must return the loan amount and pay interest for each day you use it.
What can be taken to a pawnshop?
Any valuable property, except real estate, can be pledged into a pawnshop - from a gold ring to a car. Pawnshops will not accept apartments, summer cottages and other real estate on bail, they are even prohibited from advertising such services.
For how long can you take a loan?
A loan at a pawnshop is issued for a period not exceeding a year. But of course, it's best to pay off as soon as possible. The rates here are significantly lower than in microfinance organizations. And yet it is much higher than in banks.
If you need an amount for a long time, it is better to take a bank loan or get a credit card. But it is important to carefully consider whether you can make payments on time. Indeed, in the event of delays, you run the risk of not just ruining your credit history, but ending up in a debt hole. Loans in pawnshops threaten only with the loss of collateral.
What if I can't repay the debt?
The pawnshop will sell your pledged property no earlier than a month after the end of the contract. Moreover, expensive things, which were valued at more than 300,000 rubles, will be sold at a public auction. Even if the pawnshop earns less money from the sale than it lent you, the loan will be considered repaid.
If the pawnshop is able to sell your item at a higher price than the amount of your loan and the interest that ran up to the day of sale, then you can demand the pawnshop to return the difference to you. Such a demand can be sent to a pawnshop within three years from the date of the sale of the pledge.
What if the pawnshop loses or steals my dear ring?
The pawnshop is responsible for the safety of the pledged property. He must have insurance that protects all of the clients' belongings from the risk of damage or loss. If something happens to your value, you will be compensated.
At the same time, you are not obliged to pay for storage or insurance - all costs are borne by the pawnshop.
Can my property be sold before I repay the loan?
The pawnshop has the right to sell the pledged property only if the loan is not repaid on time. And he can do this no earlier than a month after the delay in payment of the debt.
Is it possible to invest in a pawnshop at interest - like in a bank?
You can't. Pawnshops have the right to attract money only from their founders, but not other citizens.
Can a pawnshop be an individual entrepreneur?
No, according to the law, only a legal entity can be a pawnshop. Individuals and individual entrepreneurs are not entitled to offer such services.
How not to face scammers?
Find the selected pawnshop in the register of the Bank, in the tab "Having no restrictions in activity" and check the data from it with the documents of the organization: name, contact information, official website, legal address.
Thrift stores are often disguised as pawnshops. They buy property from people "with the right to buy back". In reality, such an organization can sell the “pledge” at any time, since it is not legally a pledge. A real pawnshop is obliged to issue a security ticket to the borrower.
If, instead of a security ticket, you are given to sign a commission agreement, sale and purchase agreement or any other document, then you have not applied to a pawnshop.
In addition, fraudsters sometimes act under the guise of pawnshops who lure money out of people. They offer to invest savings at a high interest rate - ostensibly to earn money by issuing loans. In fact, according to the law, pawnshops are not entitled to raise money from people who are not their owners or shareholders.
Pros and cons of pawnshops
+ Simplicity. To obtain a loan, you only need a passport and a valuable thing.
+ Speed. You can get money right away. Unlike bank offices, pawnshops work until 23:00.
+ Low risk. You are not threatened with calls and visits from collectors, lawsuits and bad credit history.
- Percent. Pawnshops issue loans at a fairly high interest rate.
The Bank quarterly publishes the average market value of the total cost of the loan for pawnshops on its official website. The CPM under the contract should not exceed this value by more than a third.
