Pawnshops 101

Ever found yourself going through your possessions hoping to find something valuable to sell for quick cash? Maybe you’ve hit a financial rough patch and need to pay off some bills or cover an unexpected expense. Whatever your reason is, pawnshops in Singapore can provide a solution to your financial woes.

Walking into a pawnshop can be intimidating and scary, especially if you’ve never done it before. After all, you may have heard tons of stories about pawnshops that give it a bad reputation. But don’t worry, it’s not as complicated as it seems.

Most pawnshops in Singapore operate similarly – you bring in an item of value, the pawnbroker evaluates it, and offers you a price to either sell or pawn it.

If you’re still apprehensive about entering a pawnshop or simply curious about how it operates, just remember that these establishments are designed to help you.

In this article, we’ll delve deeper into what you need to know about pawnshops in Singapore.

Here at OMY Singapore, you will discover the following:

What Are Pawnshops?

Pawnshops are financial institutions that allow individuals to receive cash in exchange for an item of value. You can either sell these items outright or use them as collateral for the loan.

Most pawn shops in Singapore accept the following as collateral:

  • Jewellery (Gold, Silver, Diamonds)
  • Luxury Watches
  • Electronics (Laptops, Smartphones, Cameras)
  • Designer Handbags
  • Antiques and Collectibles
  • Precious Metals (Gold Bars, Silver Bars)
  • Luxury Goods (Accessories, Limited Edition Products

If you choose to pawn the item, you have a set amount of time (usually up to 6 months) to pay back the loan, plus the interest. If you’re unable to pay back the loan in that time, the pawnshop can sell the item to recover their losses. That said, licensed pawnshops usually try to work with customers to come up with a payment plan that works for both parties.

It’s important to note that pawnshops in Singapore are regulated by the government and follow strict guidelines to ensure fairness and transparency in their operations.

How Much Do Pawnshops In Singapore Charge?

All pawnshop Singapore establishments are required by law to only charge up to 1.5% interest per month on loans. However, the interest rate can vary depending on the value of the item and the loan amount. The pawnbroker will evaluate the item and offer a loan amount based on its worth, usually 60% to 80% of the item’s appraised value.

When Should You Get A Loan At A Pawnshop

We’ve rounded up some common situations where getting a loan from a pawnshop in Singapore might be a good option.

When you have a bad credit score

When you have a bad credit score, it can be difficult to get a personal loan from a traditional bank or financial institution. This is where a pawnshop Singapore can come in handy. Since pawnshops don’t require a credit check, anyone can get a loan as long as they have an item of value to use as collateral. This can be particularly useful if you need cash for an emergency expense.

When you need cash fast

You might find yourself in a situation where you need cash immediately but don’t have the luxury of waiting for a traditional loan to be approved. In these cases, pawnshops in Singapore can be a lifesaver. You can bring in an item of value and have cash in minutes.

When you have unwanted items

It’s not uncommon to have belongings lying around the house that you no longer have use for. Instead of letting them gather dust, you can bring them into a pawnshop in Singapore and either sell them outright or pawn them for some quick cash. This can be a great way to declutter your home while also getting some extra money in your pocket.

Pros And Cons Of Going To A Pawnshop

To help you make an informed decision about whether or not to use a pawnshop in Singapore, let’s take a look at some of the pros and cons.


It’s quick

Going to a pawnshop is a quick process, unlike traditional loans which can take days or even weeks to be approved. You can walk into a pawnshop with an item of value and walk out with cash in hand within minutes.

It offers flexible terms

Unlike traditional loans where you have to meet strict requirements and are locked into a specific repayment plan, pawnshops in Singapore offer more flexibility. You can choose to sell or pawn your item, and the loan terms can be negotiated to fit your needs and budget. This means you can have more control over your financial situation.

It’s secure

Pawnshops in Singapore are regulated by the government and follow strict guidelines to ensure fairness and transparency in their operations. This means that you can trust that your item will be safe and secure while in their possession.

You can enjoy privacy

A pawnshop Singapore won’t ever share your personal information with anyone, so you can enjoy privacy when getting a loan. This can be a relief for those who are uncomfortable with sharing personal information or those who have had negative experiences with banks or other financial institutions in the past.


Higher interest rates

While pawnshops offer more flexibility, the interest rates can be higher than traditional loans. The interest rate can vary depending on the value of the item and the loan amount, but it can be up to 1.5% per month. This can add up quickly if you’re unable to pay back the loan in a timely manner.

It won’t improve your credit score

Another downside of using a pawnshop is that it won’t help improve your credit score. Since they don’t require a credit check, getting a loan from a pawnshop won’t have any impact on your credit score. If building your credit score is important to you, then a pawnshop might not be the best option.

Risk of losing your item

While pawnshops do try to work with their customers to come up with a payment plan, there is always a risk that you won’t be able to pay back the loan. If this happens, you’ll lose your item.

You won’t receive the full value of your item

When you bring an item to a pawnshop Singapore, the loan amount you receive will only be a percentage of the item’s appraised value. If you’re looking to get the full value of your item, selling it outright might be a better option.

Personal Loan Vs. Pawnshop Loan

Take a look at this table below to compare which of the two options fits your financial situation best.

Aspect Pawnshop Loans Personal Loans
Collateral Required Item of value required as security. Typically, no collateral needed.
Approval Process Quick and straightforward, with minimal paperwork. More documentation, credit checks, and approval process.
Credit Check No credit checks required. Usually involves credit checks.
Interest Rates Generally higher interest rates. Typically lower interest rates.
Loan Duration Short-term, usually a few months. Longer-term, ranging from months to years.
Risk of Losing Item Risk of losing the item if unable to repay the loan. No risk of losing personal items if repayments are made. Risk of damaging credit score applies.
Loan Amount Based on the value of the collateral. Determined by credit history and income.
Use of Funds Immediate cash for immediate needs. Flexible usage based on the loan purpose.
Repayment Flexibility Limited flexibility, usually a one-time repayment. Flexibility in structuring repayments over time.
Availability More accessible to individuals with poor credit. Availability depends on creditworthiness.

A Word from OMY

Undeniably, pawnshops in Singapore are a convenient option for those dealing with emergencies. However, make sure to choose a licensed pawnshop in Singapore to avoid any scams or fraudulent activities. Check the list of valid registered pawnshops here.

That said, it’s always painful to say goodbye to a valuable heirloom or treasured possession, so it’s important to carefully consider all your options before deciding to pawn or sell your items.

At OMY, we offer the best tailored personal loans to help you get through a rough financial patch. We understand that unexpected expenses can be stressful, and we’re here to help you find a solution that fits your unique situation. Get a personal loan offer here.

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