What is a pawn loan? | 質屋CLOAK守山小幡店

A pawn loan is another name for a secured loan. It is a loan in exchange for an item of value, and the loan amount is based on the value of that item. Once the loan is paid off, the item is returned, but at the end of the term, you can end the loan by relinquishing the pawned item as full repayment.

What is an extension?

If you are unable to repay your pawn loan in full by the due date, you can get an extension. To get an extension, you must pay at least one month’s interest by the due date. You can then extend the term of your pawn loan for the number of months you have paid.

Common items used for pawning include jewelry such as 18-karat gold rings and necklaces, as well as bags from brands like Louis Vuitton. You can check the estimated loan amount per gram for gold and platinum on the pawnshop “CLOAK” Facebook page. → https://www.facebook.com/cloak.obata

To enter into a pawn loan agreement in Japan, you will need a valid ID. You can receive cash immediately with just your item and ID, so please visit your nearest CLOAK pawnshop.

Regarding the interest rates for pawn loans:

• Up to 50,000 yen is 8%
• Up to 100,000 yen is 7%
• Up to 500,000 yen is 5%

Interest rates may vary depending on the store and region, so please inquire at your nearest “CLOAK” pawnshop when you visit.