Parents seek quick loans at pawnshops<\/p>\n
Leo Wahyudi S, The Jakarta Post, Jakarta<\/p>\n
With the new school year beginning, parents are facing
\nincreased financial demands. Those parents unable to come up with
\ntheir children's school fees are forced to turn to pawnshops to
\nraise the necessary cash.<\/p>\n
As the school year approaches, business at the Pasar Senen
\nPawnshop in Central Jakarta has been on the rise, with parents
\nlining up at the counters to raise some cash.<\/p>\n
Barudi, who lives in Tangerang, said he was pawning his wife's
\nnecklace to get some quick cash to pay the school fees for his
\nson, who is beginning elementary school.<\/p>\n
\"I have to pay Rp 1 million. I don't have that kind of money
\nat the moment,\" he said.<\/p>\n
Ninety percent of the items pawned here are jewelry. But there
\nare also electronic goods and computers, as well as a couple of
\nmotorcycles and cars.<\/p>\n
The pawnshop receives an average of 500 grams of gold jewelry
\na day. In July, however, this figure has risen sharply to 850
\ngrams.<\/p>\n
People who pawn their jewelry receive the cash equivalent of
\nabout 88 percent of the estimated value of the item. The
\nestimated value is between 70 percent and 83 percent of the
\nmarket value of the jewelry.<\/p>\n
Despite these lower price, many people have no objections.<\/p>\n
\"Selling your jewelry here is much safer and it is an easy way
\nto get fast cash,\" one customer, Lely, said. \"Despite the low
\nprices, I think it helps us a lot, especially as we are in need
\nof instant money.\"<\/p>\n
Lely, who used to work at a private bank, said that if you
\nwent to the bank for a loan, it would take a month.<\/p>\n
At the pawn shop the entire process only takes about an hour,
\nwith a maximum 14 percent interest for four months. After four
\nmonths, a customer may extend the agreement.<\/p>\n
Heri Kisriyanto, the head of the Pasar Senen Pawnshop, one of
\n67 pawnshops in Greater Jakarta, told The Jakarta Post that in
\nJune the pawnshop disbursed more than Rp 4 billion, compared to
\nRp 3.858 billion in May. And as of July 11, it had disbursed Rp
\n1.9 billion for the month.<\/p>\n
This year, it has disbursed Rp 25.2 billion, while from
\nJanuary to July last year it disbursed Rp 26.7 billion.<\/p>\n
According to Heri, an average of 564 customers came to the
\nshop each month this year, or about 18 people a day.<\/p>\n
Almost half of them (45 percent) are employees at private
\ncompanies, while the rest are housewives, students, traders,
\nfishermen and farmers.<\/p>\n
\"They mostly need the money to develop their businesses or to
\npay school fees,\" he said.<\/p>\n
\"If a customers does not come to reclaim their goods after
\nfour months or to extend the agreement, the pawned items will be
\nsold in auction,\" he said.<\/p>\n
About 10 percent of customers fail to reclaim their goods.<\/p>\n
One customer, Yustia, who lives on Jl. Gajah Mada in West
\nJakarta, had come to the pawnshop to reclaim a necklace she had
\npawned three months ago.<\/p>\n
\"I had to keep a close eye on our family finances and my
\nhusband, who is a street vendor, also worked really hard to be
\nable to reclaim the necklace,\" she said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/parents-seek-quick-loans-at-pawnshops-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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