People start thronging city pawn shops

People start thronging city pawn shops

JAKARTA (JP): Many people start thronging pawn shops to
mortgage their belongings ranging from house utensils and jewelry
to luxury cars in a bid to get cash easily and quickly during the
Ramadhan month.

Soeparto, spokesman of the state-owned Perum Pegadaian which
oversees pawn shops, told reporters yesterday that this is common
during Ramadhan, when people pawn their belongings for cash.

He explained that many people, especially from the middle and
lower class groups, consider pawn shops to be the most effective
places to get cash.

"Most customers are small-scale traders, who need cash to pay
their business deals or to pay wages of their employees," he
said.

They prefer to use pawn shops because there they do not face
any arduous and time-consuming procedures, he said, adding that
the process to get credit can be finished in 15 minutes.

"As soon as the assessment on the price of the collateral is
finalized, the owners can take the money they need from the
cashiers," Soeparto said.

He said that in line with its mission to provide cash to the
public, the company's credits, which are set at Rp 20 million at
the maximum, bear an interest of between 10 to 14 percent for
four months.

Soeparto said that an increasing number of people from the
upper class group are also using the pawnshops to get cash. A
businessman, for example, pawned his Mercedes Benz car for about
Rp 15 million.

"We also receive many other types of goods, such as rugs,
plates, radios, television sets and even spoons as long as their
price is not below the minimum limit of Rp 5,000," he added.

Turnovers registered at the city's 12 pawn brokers increase by
an average of between 10 and 20 percent during the Ramadhan month
from those recorded on ordinary days, he added. (yns)