Knowra Pawnbroker Pawnbroker A pawnbroker lends money against personal property held as collateral. If the borrower does not repay the loan under its terms, the property may be sold.
Pawn loan : A short-term loan secured by personal property that the lender holds until repayment or forfeiture. It is the transaction a pawnbroker makes with a borrower.
Jewelry : Personal ornaments made from materials such as precious metals, gemstones, or beads. Its value and portability make jewelry a common form of pawn collateral.
Unsecured loan : A loan not backed by specific collateral pledged to the lender. Unlike an unsecured lender, a pawnbroker holds a specific item against the debt.
Consumer protection : Laws and policies intended to safeguard people in commercial transactions. Rules can govern pawn-loan disclosures, fees, holding periods, and sales.
Collateral : Property pledged to secure repayment of a loan or other obligation. The pledged item gives a pawn loan its security.
Gold : A dense, malleable chemical element valued for jewelry, investment, and industrial uses. Gold can be assessed by weight and purity when pricing pledged jewelry.
Payday loan : A short-term, high-cost loan typically due around the borrower's next payday. It provides a short-term borrowing alternative without requiring a pawned possession.
Truth in Lending Act : A United States federal law requiring disclosures about the cost and terms of many consumer credit transactions. Its disclosure framework is relevant to which pawn transactions fall under federal credit rules.
Loan-to-value ratio : The amount borrowed expressed as a proportion of the value of the asset securing the loan. Estimating resale value helps determine how much a pawnbroker will lend.
Musical instrument : A device made or adapted to produce musical sound. Instruments are among the specialized goods a pawnbroker may appraise and resell.
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