Pawnbrokers provide a lifeline


PETALING JAYA: The pawnbroking industry serves as a lifeline for many people who need immediate cash.

Malaysia University of Science and Technology economics professor Geoffrey Williams said such non-bank financial institutions offer quicker access to credit on application to anyone who has collateral.

ALSO READ: Pawnshops need help to stay afloat

“This is why it fits into the broader landscape of non-banking financial institutions,” he said when contacted.

Williams said pawnbrokers are sometimes the only source for low-income earners to obtain loans since they do not have any assets or steady income.

“But wealthy people also use pawnbrokers, especially to pawn gold jewellery, for immediate access to cash.”

While banking and financial organisations provide loans based on an individual’s income, savings, or fortune, Williams said pawnbrokers are unconcerned about this.

“They provide loans against genuine tangible items, which they maintain until the loans are paid or, in the event of default, they keep the collateral.

“This means that anyone who owns anything valuable can use it as collateral for a loan, which is why pawn dealers have survived for so long,” he added.

Williams said pawnbrokers have a strong future but they need to change their image and become a friendly and approachable source of financial help.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Pawnbrokers , pawnshop , finance , economy

   

Next In Nation

MCA calls for MACC Probe on Selangor Mobility Initiative
Local woman found dead ourside apartment in Bundusan, believed fallen from fourth floor
Melaka residents still fear crocodile threats
Effects of fuel subsidy rationalisation is valid public concern, says Muhyiddin
PM’s pol-sec Datuk Azman Abidin is now FT PKR chief, while Rafizi and Nik Nazmi removed
Foreigner arrested over alleged molestation of two-year-old girl
MCA leaders from Federal and state levels must engage with grassroots, says Dr Wee
Perlis tourism exco regains consciousness, in stable condition
Sabah Tourism Minister encourages incorporating nature and urban living into artwork
Man found drowned after falling into river near Segamat

Others Also Read