'Thank God, pawnshops provides intant cash'

'Thank God, pawnshops provides intant cash'

Pawnshops are a popular alternative for people, especially
those in the lower income brackets, looking to raise some quick
cash. Besides the speed of the whole process, some people prefer
pawning their valuables because of the "low" interest rates
compared to those offered by loan sharks. This is why so many
Jakartans turn to pawnshops when they need money fast.

Purnomo, 45, a Jakarta-born security guard at an entertainment
center in West Jakarta. He live Rawabunga, East Jakarta.

"I just pawned my motorcycle last week because I was in dire
need of cash for my son's studies. He just graduated from high
school and will continue his studies at a private university in
Central Jakarta.

Thank God I was able to get Rp 11 million in cash for the
motorcycle. I used Rp 3 million to pay my son's school fees,
including books and the entrance fee.

Now I have to get to work by bus, but it's OK. I still have Rp
8 million left that I can use for other things."

Suwarno, 38, a street vendor and father of three. He lives in
Cengkareng, West Jakarta.

"I pawn my wife's gold necklaces and rings at the nearby
pawnshop when I need money to expand my business or for something
else important, like paying my children's school fees.

The pawnshop is very helpful because if I need cash, the
process is fast. I just go to the pawnshop and the employees
evaluate my goods.

Besides the speedy process, the interest rate on the loan is
also low compared to loan sharks, who charge interest rates as
high as 50 percent."

Amelia, works as a public relations officer at a private
company in Senen, Central Jakarta.

I think it's OK to go to a pawnshop. I admit that once I went
to the state-owned pawnshop.

Some people may feel awkward going there. The public has
stereotyped people who go to pawnshops as those who are in dire
need of money during a very difficult time.

This stereotype made me a bit uneasy the time I went. I just
needed cash so I could spend the weekend with my boyfriend. I had
run out of cash, so I decided to pawn a pair of my gold rings for
less than a million rupiah.

Why should I feel ashamed if I really was in need of the
money? It's much easier to get fast and practical credit at low
interest. I paid back the loan in three days.

Just think if you use your credit card, how much interest you
have to pay for a cash withdrawal. In addition, you have to pay
an administrative fee, which depend on the bank that issued the
card.

So, I think pawnshops are the quickest solution with the least
risk for those who need cash. At least that was my experience."