Pawnbrokers lend money on a variety of items that have value - from jewelry and gold to tools and vehicles.
A customer borrows money on the item, while the pawnbroker holds the item for collateral against the loan. The amount of money loaned can range from $5 to thousands of dollars. In Florida, the loan is for 30 days with an additional 30 day grace period. The interest ranges, but cannot be more than 25% for 30 days.
Customers can either redeem their item by paying off the loan and fees, or they can extend the loan by paying just the interest.
The process is much the same as any other lending institution, with the primary difference being the size of the loan, the collateral and the holding of the merchandise until the interest or the loan has been repaid.
|