What happens if I was unable to repay?

No doubt money is the need of money and without it, one cannot live with all his desires. Today’s banana economy has taken everyone into its grip and everyone is

Running after money to make his both ends meet. The man has become a bread earner. In the long run of the economy and power most men were defeated and they have to borrow from others to live and strive in this world. The man has started the business of giving loans to the needy ones long ago and in return collected interest money as a profit. There are millions of loan agencies but their interest rates are high

Are you worried to arrange some money for your daily expenses and could not find a way to escape from this situation then opening your jewelry box is not a bad option at all as you have enjoyed wearing it and now it comes to sell it for some good price but to whom you should sell and at what price?

Selling is not a bad option but choosing the right customer is not easy, usually, some jewelry shops might buy them from you on cheap or half rates which do not satisfy you so what is the next option? We will tell you, a number of pawn shops are opened now where you can sell your valuable things or can take some money in terms of pawning. As selling will only give you money but pawning will give you money along with your valuables which you wanted to sell. Ownership is finished when you sell your valuables but not with pawning so it will be better to take some money from a pawnbroker.

Who is a Pawnbroker?

A Pawnbroker is actually an agent who offer his loan or borrowing money services and gives you the difference between the interest rate charged on ordinary loan companies or banks and that of the Pawn shops. Most people thought that Pawn shops are another name of fraud but that is totally wrong as these are registered with thin the state laws and pay taxes for their earnings.

What is Pawning?

Pawning is a type of trading in which you give something as security and take the money you want but your valuable thing is not gone and you have still the chance to reclaim it back.

How to reclaim it back?

Your terms of security or the thing you want to give it in security should be equal to the double amount of the loan or you can say some money you want to borrow for your small expenses. When this condition is full filled the next thing you going to be face is agreement letter and if you are not in the position to pay back the money then your security will be gone forever. The time limit for repayment could be increased by submitting the monthly interest charged on the money borrowed. Keep in mind that the interest from loan or banks is always higher as compared to the pawn shop dealer’s rate of interest.

After reclaiming your asset and giving all the money back you can get back your asset or collateral. Collaterals actually the thing or your asset which you owns and had given as security for your loan.

Why people attracts more for pawn loans.

The following reasons give an answer to such question as it is considered the best way for acquiring a loan.

Low-interest rate: In Pawn ships, you get the low-interest rate as compare to the banks and other loan companies.

No legal process:

In pawn loans, you do not want to go for any legal procedure as these are government recognized and you only deals with the asset you have deposited.

More time with less payments:

In pawn shops, you are not given a specific time like of a bank policy as every customer have different problems and that is the reason in pawn shops loan repayment time is decided with the customer and it helps the customer.

Maximum limit of loan:

You can take any amount of money you want but the collateral you deposited should be double the amount you requested for the loan. This does not require anything as pawn shops require an asset which will be a security for the money being given to the pawn agents.

The risk to minimize in repayment:

Most customers who go for other options in case of inability to repay their loans must not do something incredible which might involve you in a criminal activity as pawn loans are also government registered and anything against the law will be dangerous for you.

Always take which you can repay:

Most people when got the chance of taking a loan request for a huge amount of money which becomes the real trouble for them. Taking high means high interest and high amount to repay so it is better to take always what you want and never go for such condition in which you cannot pay always pay back your pawn loan to become a trustworthy customer and to avoid other problems for yourself.

As we all know at no legal action will be taken against the customer I case of pawn loans but still you have to pay a fixed amount in case of penalty applied to you before taking the loan as this will not give you back your valuables but will secure the fees and other payments for the pawn shop management.