In addition to familiar regular customers, new customers have also resorted to pawn loans. By pledging valuables, you can get a quick money loan, for example, at a lower interest rate than a quick tip.
The difficult economic situation and citizens’ lack of money can also be seen in pawn shop operations.
By pledging valuables, you can get a quick money loan at a significantly lower interest rate than, for example, a quick tip. This year, in connection with transactions, many customers have mentioned, among other things, the electricity bill as the reason for pledging.
Pawn lending is usually an activity preferred by a certain group of regular customers, but this year there have been more new customers than usual. The trend can be seen in Päijät-Hämeen Pantti Oy in Lahti and Hämeen Pantillainakonttori Oy in Forssa.
With new customers, objects end up at auction more often.
– When leaving much more of a deposit, people now say that they will not be able to claim it, but that the item can be sold. There is also a lot of extending those loans and not redeeming them right away. That has also increased, says Tapiola.
According to him, the loan period for the pledged object is three months, after which the pledge must be redeemed or the loan period extended.
Pawning is easier than applying for a bank loan
Pawn shop operations are not very familiar to the general public, although they have a long tradition in Finland. According to Juha Tapiola, in the event of a sudden need for money, a pawnshop loan can be an easy and quick solution.
– If the refrigerator needs to be replaced or the car repaired, you can get help from the pawn shop. You have to make an appointment with the bank, conduct loan negotiations, and the delivery fees are so high that it is not worth taking small loans from the bank, Tapiola states.
The most common items to be pawned are gold and silver jewelry and various musical instruments. According to Tapiola, phone shares are still brought to Lahti for pawning.
*You can discuss the topic until Thursday 8 December 2022 at 11 pm.*