There are many advantages and disadvantages of pawnshop but choosing the one which is nearest pawn shop singapore is advisable so that at any time you can easiky go and come. Here are few advantages which include:
- The requirements are light and easy;
- The procedure is simple;
- There is no administration fee;
- No need to open an account such as savings, time deposits or checking accounts;
- When money is needed, at that time money can be obtained;
- Diversity of goods that can be used as collateral;
- The instalment is light because the amount is not determined so that it can be paid in instalments according to ability;
- Determination of interest with a declining interest system. So interest is charged based on the remaining loan;
- If the loan is due and the principal has not been paid, the term of the loan can be extended, by paying interest first;
- Obtain a grace period of 2 weeks after the due date without being charged with interest during the auction waiting period.
- Relatively short time to get money, namely on the same day, this is due to the simple procedure;
- Very simple requirements, making it easier for consumers to them;
- The Pawnshop does not question what the money is used for, so it is by the wishes of the community or its customers.
The disadvantages are
- Pawnshop’s capital lease is relatively higher than the bank’s interest rate;
- There must be collateral in the form of movable goods that have value;
- Movable goods that are pawned must be handed over so that the goods cannot be used while being pawned;
- The number of mortgage loans that can be granted is still limited.
So the advantages and disadvantages of the company when compared to bank financial institutions or other financial institutions are understood clearly.