The Pawnshop: How Does It Work?

Need money? In case of a hard blow or an unforeseen event, the pawnshop is an easy and quick solution. This type of loan allows you to obtain an immediate loan against the deposit of a valuable object.

What Is The Pawnshop?

The pawnshop is a store which offers loans in exchange for a valuable object as equivalent collateral. It can be a piece of jewelry, a watch, silverware, a painting, a sculpture, furniture, or even a musical instrument.

Just like in a saloon pledge (รับจำนำรถเก๋ง, which is the term in Thai), this loan is granted immediately according to the estimated value of the object on the public auction market.

How Does It Work?

An independent auctioneer values personal items that are pledged. The value of the deposited object determines the loan amount. If the loan is refused, the objects are immediately returned to the customer.

If the loan is granted, its amount represents 50-70% of the estimated value of the object on the market of public auctions. A nominative contract is established for one year, and the sum of money is immediately given to the person.

The deposited objects are kept in a strong room. It is possible to retrieve them at any time before maturity by repaying the loan amount and interest.

However, there is no maximum period for repaying the loan, provided the client pays the childcare costs each year. The cost of the loan varies between 9 and 15% of all costs included. If the customer cannot repay the loan or pay the custody fees, the item is auctioned off, and the proceeds are used to repay the loan and interest.

To pledge an item, you must provide:

  • A valid identity documents
  • A proof of address of less than three months (rent receipt, EDF invoice, etc.)
  • For certain items, an invoice or a guarantee or expertise certificate

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