Pawnbroking has a long and colourful history in the annals of London and its surrounding areas. It is a practice of providing quick loans to the needy in exchange for a valuable asset that acts like collateral. If you have something of value to hand over to the pawnbroker either as security or to sell it altogether, you can get instant cash to meet your emergency. Pawnbroking in London and Pawnshops are very old, dating back to the start of the 19 th century.
Pawnbrokers accept mostly jewellery items as they are of high value and can be easily converted into cash. But talk to a pawnbroker and he would tell you how the rich individuals come to them to get some money by giving away their expensive Rolex and Bentley watches. Other household items accepts as pawn by these pawnbrokers are cars, antiques, computers, mobile phones, and other electronic items.
The feature that makes pawnbroking in London and Pawnshops alluring for those who need money quickly is that they need not worry about their credit score at all. These pawnbrokers do not run any credit checks and give away the money required by the borrower provided he has something valuable to be kept as pawn by the lender.
In recent times, pawnbroking as a practice has received bad press because of the high rates of interest charged by these lenders. It is true that pawnbrokers charge a much higher rate of interest from their customers. But they are entitled to this high rate of interest as they give money without thinking about the trustworthiness of the borrower. They do not ask for any formalities and paperwork and help the needy in times of his emergency. These are the reasons why people still rush to pawnbroking establishments whenever they need quick money.
When you go to a pawnbroker, you hand over the valuable that you want to give as security. He values the item for you so that you are aware of how much money you can get from him. He will then produce a letter of agreement containing the terms and conditions of the credit being offered to you. The agreement also contains the duration of loan which is 7 months at the maximum. Normally, the time given by pawnbrokers to their customers is 30-90 days. You get a receipt for the pawn and you get it back when you repay the money along with interest.