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Definition: Pawn Shop
Pawn shop offer secured loans to people in exchange of equivalent collateral. If the loan and interest component is not repaid, the pawnbroker has the right to liquidate the asset and realize the amount after a period fixed by law.
The pawnbroker assesses the market value or resale value of the product and also its demand in market to determine the amount of loan to sanction. Interest rates are regulated by law. In India, some states have enacted their separate legislation to govern pawn broking Example: The Tamil Nadu Pawn Brokers Act, 1943. Those states who have not enacted any law they have incorporated separate provisions for pawn brokers within the money lending legislative.
Some pawn shops have their own website example: Royal Pawn Shop Chicago