How much percent does a pawnshop take – few of us would like to go to a pawnshop, but unfortunately, sometimes there is such a life situation that it is the only place where we can quickly get cash. This is not a place where credit conditions will be the most favorable for us, but on the other hand, it may be the only place where someone will grant us a loan on as such human terms, and situations when we need a loan quickly for short period, they can sometimes happen quite unexpectedly.
Let’s take a look at what credit conditions a pawnshop can give us by granting us a secured loan, in other words, what interest rate we can get at the pawnshop.
For whom can it be beneficial to take a loan at a pawnshop?
At the very beginning, they should themselves, for whom loans at a pawnshop can be beneficial. First of all, we must pay attention to the fact that when we go to the pawnshop, no one will check our creditworthiness. Our creditworthiness is actually the thing we are going to pawn. We are used to the fact that, for example, we can buy laptops, buy smartphones or buy gold, but if we need more cash, we can pawn a car, and in some cases there are also purchases of flats and other real estate.
Some might say that hola hola, but why should we go to the pawnshop right away, since there are companies that grant us financial loans also without checking our creditworthiness, then we also do not have to give any pledge, but we are talking about the so-called payday loans here, of course .
Unfortunately, as it turns out, payday loans are often much more expensive than ordinary pawnshops, because in the pawnshop, for example, if we leave an item and do not buy it quickly enough, we will lose this item, while in the case of payday loans, if we have a problem with repayment the loan taken, well, it may turn out that the interest over time will greatly exceed the value of the loan granted to us, and only then the financial problems really begin.
How much does a pawnshop take?
If we would like to receive clear information about how much percentage the pawnshop takes, we will not be able to obtain such information. This is mainly due to the fact that we do not have clearly defined regulations that would say how much the pawnshop should charge interest for borrowed money. Most often, however, we can meet rates that oscillate around one and a half to three percent per day.
This is, of course, quite a lot, but it is also not limited in any way. Namely, it is limited in such a way that if we wanted a loan in a larger amount for a long period, the sum of annual interest cannot exceed ten percent of the loan value. If this type of situation would occur, such a loan is treated as usury, and usury is prosecuted in Poland under the criminal paragraph.
What may the amount of interest depend on?
It may sometimes turn out that in the same pawnshop we will get a different interest rate for two different loans. This is not because the pawnshop owner has such a whim, but because in some way, the terms of our loan have changed. We can generally distinguish such relationships that the longer the loan period and the larger the amount, the lower the interest rate. If we take a loan for a small amount and for a short period, then the interest will be quite high.
We should also take into account that, regardless of what we pledge, we may be charged, for example, the costs of storing the item. If, for example, we pawn a mobile phone, we will most likely be charged nothing for storage, or it will be a symbolic amount, for example PLN 1 per day.
However, if it was, for example, a car, then such costs may be much higher, for example in the amount of a dozen or even several dozen zlotys per day.
The amount of the loan and the valuation of the item in the pawnshop?
How is the interest rate in general related to the valuation of the item in the pawnshop. Many people notice that although the interest, although high, does not seem so terrible, especially when we are against the wall, if we add the valuation, which is usually fifty percent of the real value of the items, then the actual cost of such a loan, is very big. Of course, this is true, but we must take into account the fact that the pawnshop, if we do not repay the loan, will have to sell the pledged items.
It is not in the interest of the pawnshop to sell the item at the highest possible price, i.e. the one that is closest to its real value, but to sell the goods as quickly as possible at a profit. In fact, the pawnshop must give you a very bargain price. For this reason, the valuation most often oscillates around 50% of the real value.