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)