Pawnshops play an important role in providing access to credit to persons who are in financial needs, and have therefore been allowed to operate during the circuit breaker period from 7th April 2020 to 4th May 2020.
In order to provide support to the public coping with the current challenging conditions, the Singapore Pawnbrokers’ Association (“SPA”), together with Ministry of Law’s Registry of Pawnbrokers developed an interest cushioning plan for the industry. SPA has obtained consensus from its members to offer interest waiver with the following guidelines:
- All pledges pawned on or before 6th April 2020 will be given a one month interest waiver upon redemption or renewal if the pawn period exceeds one month.
- Any valid pawn ticket which expires on or before 4th May 2020 and where its pledge has not been forfeited, will automatically be granted an extension of one month from its expiry date. Redemption or renewal will also be given a one month interest waiver.
- All new pledges pawned from 7th April 2020 onwards will be charged interest as per normal.
- All redemption and renewal between 7th April 2020 and 4th May 2020 will not be penalised (e.g. subject to higher interest or additional fees) as a result of third-party redemption and renewal.
The interest waiver mentioned above is up to a maximum of 1%.
Note: Pawnshops that are open during this period may operate different business hours. Please call the pawnshop for further details.
The above interest waiver advocates our government’s effort to provide relief to those in need. With cohesion & care, we will ride out this challenge together.
13 April 2020