Most people only look at pawn shops in Johannesburg for quick loans or good deals on second-hand goods. What they don’t know is, pawn shops also sell brand new items for great prices. But for those of you who want to make use of pawn shops for the occasional quick loan, here are some answers to help you out.
1.What does a pawn shop do?
The core of most pawn shops is to make collateral loans. They offer loans by securing something of value. Pawn shops also offer a second hand and new goods for sale.
2.How do pawn shop loans work?
You as the customer bring something of value to the pawn shop. The pawnbroker will then examine your item/s and give you an offer. You can then accept the offer and agree to the period to pay down the amount agreed upon. Take note: The pawn shop has to consider the cost of storage, security and future demand for the item to give you a price. However, loans can be made for any amount based on the value of the pawned item. Once the loan has been repaid within the agree time, the item is returned to you, the owner.
3.How much can I get for an item?
On average, it depends on the item itself and how high the demand for the item is. Gold, silver, diamonds and other precious stones and metals always play to your favour. Electronic equipment in good working condition usually cost slightly less than that but is still good for a loan. To find out how much you can get for an item, it’s always best to speak to your pawnbroker at Capital Pawn first.
4.What’s the interest on the loan?
Interest loans vary and are dependent on the time limit is given by the pawn shop. A 30-day loan will have the least amount of interest of say 20%, where a four-month loan could be double the loan amount. So, make sure you can afford to pay your loan back, should you not be able to, read point 6.
5.What do I need to get a loan?
All you need is an item of value that is in good condition and in working order to get the most value for your loan. In other words, don’t take something that has personal value and no actual value.
6.toWhat happens should I not repay the loan?
In cases such as this, the pawn shop will sell your item/s to make back the money they gave you in the loan. They are a business after all, so when it’s not paid back, they will have to make that money back.
For many years now, pawn shops in johannesburg have been providing safety net loans to families that suddenly fall into a financial emergency. These small time loans are simply not offered by banks and other lending institutions.
Contact us today for a free valuation and get cash instantly.