What Is the Interest Rate on Pawn Loans?

Interest Rates on Pawnshop Loans

• The interest rate on a pawn loan can vary depending on the pawnshop and state, ranging from 10% to 25% per month.
• Factors influencing pawn interest rates include the type, age, and condition of the item.
• Best interest rates are achieved by comparing offers and providing high-value items in good condition.

Types of Items Pawn Shops Consider

• Pawn shops usually buy items they can sell easily, such as jewelry, electronics, tools, games, clothing, and accessories.
• Gold and Jewelry are common items accepted at pawn shops.

Loan Repayment and Consequences

• Repayment terms for pawn loans are typically straightforward, with the loan, interest, and fees due within 30 days.
• Failure to repay a pawn loan may result in forfeiting the item, leading to its sale by the pawnshop.

Comparison of Interest Rates with Other Loans

• Pawnshop loans typically have high interest rates, ranging from 10% to 25% per month.
• While pawnshop loans can have an APR of around 200%, they still compare favorably to payday and car title loans at over 400% APR.

Annual Percentage Rates and Additional Fees

• Interest rates on pawnshop loans can vary from 20% to 25% per month, potentially resulting in an APR exceeding 200%.
• Some pawnshops may charge additional fees, like storage fees for collateral, impacting the overall cost.

Factors Affecting Pawnshop Value and Interest Rates

• Value assessment at pawnshops considers factors such as item condition, market demand, and resale potential.
• Pawnbrokers typically charge interest rates between 3% and 10% per month, varying by loan size and company.

Regulations and Usury Laws

• Laws restrict interest rates, but national banks can charge based on their home state regulations.
• Usury laws set limits on allowable interest rates for different loan types.