All About Loan In Singapore
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When To Loan From A Pawn Shop Instead Of A Bank

Pawn shops are sprouting up all over Singapore. And a lot of them have a very big presence in the heartlands like Tampines, Ang Mo Kio, Toa Payoh, etc. It must be big business indeed for pawn shops in Singapore. This can be further emphasized when one of the big players have recently went public with an IPO.

Many people think about why anyone would want to use a pawn shop instead of a bank. Such a place requires a borrower to place a collateral while a banks does not require one. It is also such a hassle to run up back and forth to visit them physically while a bank can do everything online over the internet these days. Here are some reasons why you should take pawn shops seriously if you are considering taking up a small personal loan.

1) Lower interest rates. When you put up your jewelry or valuables as a security deposit, it effectively makes you loan a secured personal loan. Secure loans will inevitably mean lower interest charges compared to one that is unsecured. The difference in interest rates can be as much as 10 times when comparing the 2 types of loans.

2) Personal credit. If you are someone with a less than perfect credit record, a pawn shop will care very little about it. This is because you provided a collateral. They are unlikely to reject you because you have bad credit. In the event that you do not redeem or repay your loan, they will just take your jewelry. This also means that you will not have bad credit for not redeeming your items.

3) Privacy. You could be embarrassed to let people know that you are looking for a personal loan. A trip to the pawnshop nearby is less likely to be spotted than a trip to the heartlands entering a pawn shop.

4) Over borrow. Because you will be issued a loan based on the value of your collateral, there is little chance that you will borrow over your own means. You don’t want a situation where you took up a loan that you cannot afford to service promptly.

Needing money once a while is not a situation to be embarrassed about. A lot of people run into these situations all the time. With the expanding operations of pawnshops all over Singapore, it is indeed so easy these days to get access to cash for urgent situations. Even if you have no valuables to use, you can also go to a licensed money lender to get you money.