Pawnshop in Cimahi offers loans with easy terms<\/p>\n
By Kafil Yamin<\/p>\n
BANDUNG (JP): The Composite Index at the Jakarta Stock
\nExchange hit a low of 431.43 and the rupiah fell to 9,523 against
\nthe greenback. But the crowd here had no idea what these figures
\nreally meant.<\/p>\n
The people at the pawnshop in Cimahi, West Java, have only one
\neconomic indicator: the size of the crowd in the shop. \"If times
\nare hard, there will be more people here. If things are better,
\nit's quieter,\" said Basuki Widyanto, the head of Cimahi pawnshop.<\/p>\n
To put it another way: when people can no longer afford life's
\nnecessities, the size of the crowd looking to pawn their
\npossessions is larger. And as the Idul Fitri holiday draws near,
\nmore people are seen at the pawnshop.<\/p>\n
Before the month of Ramadhan, the pawnshop had about 100
\nvisitors a day, but last week that number rose to about 500
\npeople a day. They pawned what they could: from TV sets and VCD
\nplayers, to gold necklaces, rings and batik clothes. For many of
\nthem, this is just how they get cash.<\/p>\n
Maemunah, a mother of three, had some bedsheets to pawn. She
\ntook a seat and waited to be called and get her money. She said
\nshe had no idea how much she would get. \"But I guess I will get
\nRp 20,000 or Rp 25,000.\"<\/p>\n
She is a regular and knows to expect about 40 percent of the
\nvalue of the item being pawned. \"I wish I did not have to come
\nhere, but I cannot find any other way to get money except to
\npawn my goods. We need money badly.\"<\/p>\n
Maemunah's husband is a primary school teacher whose income is
\nnot enough to make ends meet. So they run a small warung that
\nsells daily necessities, but many of their customers make
\npurchases on credit. \"My money is tied up at a time when we are
\nin need of a lot of things. You know it will soon be Lebaran,\"
\nshe said.<\/p>\n
Jubaidah, a mother of four, said she had come to the pawnshop
\nbecause her son needed to pay his school fees.<\/p>\n
\"You can call it a pawn rush these days,\" said Basuki, aware
\nthat Ramadhan and Idul Fitri were behind the rush.<\/p>\n
From January to November this year, the 12 pawnshops in
\nBandung municipality paid out Rp 265 billion to its customers.
\nCimahi pawnshop was responsible for Rp 13.4 billion of this
\namount.<\/p>\n
Some members of the community are regulars at the pawnshop. If
\nthey have financial problems, they come here for cash, and when
\nthey are back on their feet they will reclaim their pawned
\nbelongings.<\/p>\n
\"I've just pawned my mixer,\" said Jabuidah, adding that she
\nneeds a mixer to make cakes for Lebaran, but luckily she has
\nanother one.<\/p>\n
She said the pawnshop had become her partner and friend. \"I
\nthink that for all of us here, the pawnshop has become our good
\nfriend.\"<\/p>\n
\"A friend, indeed, because this is where we always come when
\nwe are in need,\" added Tatang Rusadi, who came to the pawnshop on
\nJl. Ahmad Yani with a brand-new VCD player.<\/p>\n
The main attraction of the pawnshop is the simple procedures.
\nPeople just give their goods to an officer, who in a matter of
\nminutes (or seconds) appraises the value of the items and decides
\nhow much the pawnshop will pay.<\/p>\n
\"The only requirement is that the items not be defective or
\ndamaged. Legal documents are required for certain items,\" Basuki
\nsaid.<\/p>\n
The pawnshop offers four different categories of loans: A (for
\nloans between Rp 5,000 and Rp 45,000); B (Rp 45,000 to Rp
\n150,000); C (Rp 150,000 to Rp 500,000) and D (Rp 500,000 to Rp
\n20,000,000).<\/p>\n
For the A and B categories, the pawnshop imposes an 1.25
\npercent interest rate for every fifteen days. For C-category
\nloans the interest rate is 1.5 percent, and for loans in the D
\ncategory the interest rate is 1.7 percent for every fifteen days.<\/p>\n
\"This is still better than the rate imposed by loan sharks,\"
\none of the customers said.<\/p>\n
If a pawned item is not reclaimed after 120 days, or four
\nmonth, the pawnshop has the right to sell the item at auction.<\/p>\n
As more people come to pawn their goods, there is also an
\nincreasing number of people failing to reclaim their belongings.
\nThere has been about a 10 percent increase this year in the
\nnumber of items not reclaimed.<\/p>\n
And there are always a few people who take advantage of this
\nsituation.<\/p>\n
Tatang often goes to the pawnshop auctions to try and
\npurchase the items that have caught his eye.<\/p>\n
\"Buying things at the auction saves a lot of money. I once
\nbought a 20-inch color TV for only Rp 150,000,\" he said.<\/p>",
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