Comprehensive Guide About Pawnshop Singapore
Pawning is one of the oldest options to get quick cash. You entrust a valuable item to a pawnbroker bound by a legal contract. Understand how it works through this Comprehensive Guide About Pawnshop Singapore. TEST TEST
Pawning requires a legal contract expressing that you must redeem your pledge. For example, paying the loan plus the interest agreed on within a specific period.
Fascinating Pawn Facts
- The word ‘pawn’ comes from the Latin word pignus, which means to pledge, now known as collateral.
- Pawnshop Singapore gives six months for their clients to redeem their collateral; they also use this to give the police some time to check suspicious items.
- In the United States, less than .02% of pawn shop transactions involve stolen items.
- In Singapore, more than 3% of pawners could not redeem their pledge from June 2015 till April 2016.
- It was illegal due to loans with interest-based on Mosaic Law.
- The famous History Channel’s Pawn Stars undeniably made pawn shops more attractive than they used to. The most expensive item they have is a cigar box that belonged to John F. Kennedy, fetching at the US $125,000.
- The pawn brokers’ patron saint is Saint Nicholas.
- The three golden balls hanging outside the pawnshop as a symbol possible commemorate the story of Saint Nicholas dropping 3 bags of gold at a poor man’s house to save his daughters from becoming prostitutes.
Credit: https://supershuttledenver.com/whats-interesting-with-pawn-shop/
Pawnshop Singapore Origin
When a person has barely enough money to pay the bills and emergency expenses to clear, the typical solution is to take out the family heirloom. Then, go to the nearest pawnshop to get a loan. It has been the most straightforward solution since the 19th century when the first pawnshop was put up in operation.
History of Pawnshop Singapore
Lending money with collateral originated around 3,000 years ago and thrived in Ancient China, Rome and Greece. Peasants used to take their clothes, the most expensive item, to get a loan. Since then, people seen pawning in these establishments are considered poor. Thus, pawn shops are known as “poor man’s bankers”. However, times have changed. Pawnshop Singapore is now commonly used by business people, white-collar workers, and gamblers from all walks of society.
Singapore was founded in 1819, and after four years of starting as a booming settlement, Sir Thomas Stamford Raffles shared his views on pawnshops that began to exist on the island. He said that pawnbrokers have to be regulated under strict rules, as there is a risk that may take advantage of the poor’s needs.
In 1824, is the first recorded existence of pawn shops. They must tax $480 to the British colonial administration since Singapore was a British settlement.
It is now common for a pawnshop to be owned by a Chinese. In 1872, Sheng He Dang opened the first Chinese owned pawnshop. By 1886, there were 26 pawnshops giving loans to poor locals. Since the business was steadily booming, there was a need to regulate the industry. Thus, the Pawnbrokers Ordinance was then passed in 1898.
Rise of Pawnshop Singapore
From 1620 to 1929, 25 pawnshops rise in the industry. The 22 pawnshops were owned by the Hakkas, the last surviving remnants of Northern Han Chinese. According to the records, these pawnshops could generate a monthly turnover of $2million a month. Yet, the industry received its first serious blow in 1929 during the Great Depression. The brokers began to pick up the pieces and started gearing again in 1935. Unfortunately, the second serious hit went down on them during World War II.
After the war, it was time to restart the business. Fifty pawnshops were thriving by 1978, then in two decades, 19 more entered the industry. As for the regulations, The Pawnbrokers Act exists. It has been revised from time to time further to increase the quality of services to the Singaporeans. Currently, there are 277 registered pawnshops in Singapore, located at convenient places for everyone in need of quick cash.
How Pawning Works
Pawnshop Singapore, as many know, thrives with secured loans. Yet, unlike the banks which use homes and cars as collaterals, pawnshops accept signature bags, luxury wristwatches and pens, jewellery and gold/silver as pledges. Of course, the broker may have other businesses, such as a jewellery store. But the main focus is pawnbroking.
The Process of Pawning
When you enter the shop to pawn your valuable item, the appraiser will authenticate your pledge, whether real gold/silver for jewellery or genuine or imitation for luxury watches and bags. Expect your jewellery to be weighed, scrutinized under a magnifying glass, and closely examined. The appraiser will then decide the value of your pledge based on its second-hand retail price.
The price will also be based on various factors. The broker will consider the economic trend when appraising jewellery, especially now that the gold price is fluctuating. The broker will try to predict its future value. The edition of the limitedness of design will be considered for bags and watches. Remember that the broker aims to see that they can benefit from the pledge should you fail to redeem it.
The brokers also use the web to appraise your pledge through an old business. They surf through buy and sell websites such as eBay and Amazon to know the current prices opened to the public. When it comes to gems and jewellery, they will consider the weight, cuts, rarity, and metal works. Brokers usually hire staff with expertise in such valuables.
Though it is not yet proven, some think that the sentimental value you have with your pledge also affects its value. The more emotionally attached you are to the collateral, the higher the value it goes because you will be more determined to redeem it.
After the appraiser has set the price, you can only borrow around 60-80% of its second-hand value. Then you have to provide a personal identification card to prove your identity and current age. Furthermore, it prohibits minors age 16 and below to pawn any valuable. Finally, if your collateral exceeds the worth of $200, you have to prove your ownership with legal documents such as purchase receipts.
If you can’t prove that you own the item, the broker might suspect that you have stolen it or acquired it through illegal activity. Should this happen, they are given the right to detain you and seize the suspicious item until the police come for further investigation.
Calculating the Value of Pawnable Item
Pawning seemed easy; it only required a pledge and an id. Apart from it, the interest rate may appear low. Yet the pawnshop Singapore can raise the interest rate by 1.5% every month until you redeem the collateral. Loans through pawning usually take six months. After six months, the ownership is legally transferred to the brokers. After that, it is at the discretion of the brokers on how they will dispose of the valuable unclaimed items.
(Amount of pawn loan) x (Number of months for the loan) x 1.50% = (Interest charge)
If you miss three months: 1.50% interest rates multiplied by 3 months = 4.50%
After successfully pawning your valuable item, make sure that you keep the pawn ticket. Remember, it is a hassle when you lose it. First, you have to get down to your pawnbroker. Then, ask for a form of declaration and fill it out. Afterwards, make a declaration before a magistrate or a Notary of Public. Complete the process within 3 days.
Imagine the hassle and extra expenses you could have saved if only you had kept the pawn ticket in a safe place.
Pawnbrokers Act
Since 1st April 2015, auctions for unredeemed items are no longer held in Singapore as per the revised Pawnbrokers Act. Since the brokers now own the forfeited items, they can decide what to do with the pledges. So if your item has a deep sentimental value for you, make sure that you will be able to reclaim it. Unfortunately, not all pawners are successful when paying off their collaterals; around 3% of Singaporeans could not settle their loans and lost their pledges.
After paying off the loan, you can get back your precious item. If you cannot settle in six months, you lose the stuff, yet your responsibility of paying the loan also ends with it.
Pawning sounds easy, but you also have to know that there is a possibility that a broker will reject your item. And what if you do not have an asset that can be used as collateral?
Pawning is to risk losing your beloved valuable in a minimal period. However, you can choose to get a personal loan from licensed moneylenders such as Cash Mart. Personal loans have flexible terms and payment schemes that fit your unique needs.
Credit: https://somethingborrowedpdx.com/scrap-gold-price-at-pawn-shop/
Gold: The Most Pawned Item
It is no secret that the most pawned item and the prime acceptable item is jewellery, especially gold. On Wednesday 15th June 2016, the gold price in Singapore calculated in Singapore Dollar (SGD) closed at $23.35 per gram of 10karats. A gram of 24 karats was $56.04.
The value of gold in the world market that directly affects its value in the industry of Singapore often changes. It has its ups and lows. The pawnbrokers watch the trend close to predicting its value in the future.
Traditions have Changed: The End of Auctions
The auction of unredeemed pledges has been part of over half a century of pawnbroking tradition. Unknown to many, the auctions are open to the public. Anyone can bid on the pledges, yet jewellery resellers are more aggressive in bidding that scare away the public bidders. And pawnbrokers admit that they don’t gain much with auctions as they have to shed money to organize it.
The Pawnbrokers Act was revised in 2015, removing the auction system. The Registry of Pawnbrokers believes that the removal of the auction will let the brokers give better appraisals to pledges. The Pawnbrokers also welcome the change as they do not have to incur auction expenses, and their administrative work has been dramatically reduced.
Instead of disposing the pledges through auctions, the pawnbrokers can either resell the item in their branched jewellery store or melt the gold or silver and recreate it into something new.
Registry of Pawnbrokers
The Ministry of Law requires pawn brokers to acquire a license before operating their business. The Registry of Pawnbrokers implements the Pawnbrokers Act and regulates all licensed pawnbrokers in Singapore. The Pawnbrokers Act is constantly revised to enhance the pawning industry.
Make sure you are only transacting with a licensed pawnshop in Singapore. Check the latest list of valid registered pawnshops at www.mlaw.gov.sg.
Singapore Legal Moneylenders and Pawnshops
Pawnshop Singapore
Pawnshops have been a go-to place whenever individuals need immediate extra cash. It is quick and hassle-free to get a loan, as they only require an acceptable valuable item and an ID. If you fail to repay your loan, you lose your collateral and then your loan defaults. After six months, whether you are successful or not, you are no longer liable for paying the loan.
On the other hand, the low monthly interest of 1.5% multiplies every month by 1.5%. The longer it takes to pay off the loan, the higher amount you have to settle. The loan you can get is minimal. You can’t get cash higher than the 80% of the value of your pledge.
Ultimately, you cannot get a loan without a valuable item at hand that you can prove belongs to you. Do not be tempted to pawn what is not yours. You might end up in jail with a more shameful reputation.
Licensed Money Lenders
Licensed money lenders offer various loans that can fit your need. There is no need to worry if you have a bad credit rate. Cash Mart offers loans despite a not so healthy credit score. If you get loans from a licensed moneylender, you can improve your credit score by repaying diligently and on time.
On the other hand, if you fail to pay as agreed with the lender, your credit score will go down the drain. Do not worry if you might not meet the payment scheme. The Cash Mart staff will be willing to listen to your predicament to make flexible terms only for your dilemma.
With so many moneylenders floating around the web, make sure you only get loans from a licensed moneylender. There is no need to leave collateral you cannot afford to lose. You need minimal paperwork at Cash Mart. The process is fast, and you can get your cash disbursement after 30 minutes.
Practical Solutions for Immediate Cash Needs
Even Singaporeans with regular paychecks could meet a bump on the ground regarding budgeting. It is already hard paying loans while also trying to get by with daily expenses. It is worse when you have to part with a precious heirloom to get by one financial patch. What if you lose all your jewellery, watches and luxury bags just because you failed to pay the increased loan amount from a pawn broker?
At Cash Mart, there is no need to break your heart. You can keep your treasured items. Also, Cash Mart will give you more options to get by. The staff will even give you priceless advice on getting back up financially and staying there.
With Cash Mart, there is nothing to lose. They offer low-interest personal loans with flexible payment schemes to those with a bad credit score. What’s more? You can leave the Cash Mart office 30 minutes after coming in worry-free and cash in hand.