A transaction process in pawnshop takes 5 - 10 minutes to complete under normal circumstances.

1. When the valuable articles are presented, the appraiser will examine, authenticate, weigh and estimate the pawn value. The pawn amount will then be offered to the pawner.

2. In general, gold ornaments will fetch a price ranging from 60% - 80% of the prevailing retail market value, while jewellery and watches will be based on the second hand resale value at the appraiser’s discretion.

3. Once the pawn amount is agreed and set, the pawner will be asked to produce his/her personal identity card to complete the transaction.

If the pawn value exceeds $200, a guarantor’s particulars are required to assure that the pledge articles are not stolen properties. Otherwise, the pawner needs to produce the purchase receipts for the pledge articles.
In accordance to the Pawnbrokers Act, the pawner must be above 16 years old.

4. With all necessary information provided, the pawn ticket will then be generated and the cash loan will be disbursed.

The pawner is responsible for checking that the full and correct information is recorded on the pawn ticket.

The pawn ticket captures information such as brief description of articles pawned, gross weight in grams, together with the pawn amount, written in both English as well as the Arabic notation.

Besides the full particulars of pawner being precisely captured, particulars of guarantor or purchase receipts will be recorded if applicable. The pawn ticket also records the date of pawning, the validity of Redemption period of six months and the date of expiry. The chargeable monthly interest is also printed.

On the reverse side of the pawn ticket, pawners are given the notice to redeem or renew their pledge within six months and to notify the pawnbroker of any change in the pawner’s address. The business operating hours may also be indicated.

Redemption Procedure

The pawner or any pawn ticket holder, may redeem the pledge by producing the pawn ticket and proof of identity. The pawnbroker will then return the pawned articles after collecting the principal pawn amount and the interest accrued.

Pawnbrokers are allowed to charge an interest rate of 1.5% per month or part thereof on the principal loan amount. Additional monthly interest will be imposed if the period for redemption has lapsed.


Simple arithmetic calculation will enable you to compute the interest due :

One month: amount of pawn loan multiply by 1.50%
Two months: amount of pawn loan multiply by 3.00%
Three months: amount of pawn loan multiply by 4.50%
Four months: amount of pawn loan multiply by 6.00%

Five months: amount of pawn loan multiply by 7.50%
Six months: amount of pawn loan multiply by 9.00%

The formula for the basis of interest computation is as follows:

(Interest charge) = (Amount of pawn loan) x (Number of months for the loan) x 1.50%

Pawnbrokers can cater to various flexible forms of redemption modes so as to help pawners redeem or renew within their affordable means.
There are four optional categories:

1. Full redemption: Full withdrawal of pawned articles by repaying the principal loan and interest due on the loan. Full redemption means ending of liability and obligation for both the pawner and the pawnbroker.

2. Partial Redemption: Partial withdrawal of pawned articles are allowed. The pledge may consist of a few articles. Pawners can decide to redeem only part of the pledge by repaying a partial loan and interest due on the original principal loan amount. Once the partial redemption is completed, the balance loan amount and the remaining pawned articles become a new pledge.

3. Renewal: No physical withdrawal of any pawn article. By merely paying the interest payable, the redemption period is extended for another six months with immediate effect.

4. Partial Renewal: This process can be sub-categorized into two scenarios:

a) Renew to extend the redemption period and at the same time, reduce the pawn amount by paying off the interest due on the principal loan, and part payment to the original pawn amount at the pawner’s discretion.

b) Renew to extend the redemption period and at the same time, request to increase the pawn amount, by paying off the interest due on the principal pawn amount, and obtain the extra balance available from the increased in pawn amount. (Increase is only available provided the articles were pawned at a much lower value previously as desired by the pawner).

During the valid redemption period, the pawn ticket holder could carry out the redemption and renewal of pawned articles at any time.

As far as the redemption of pledges is concerned,

1. Pledges pawned for $50.00 or under shall become the pawnbroker’s absolute property if the items are not redeemed within the specified six months’ period,

2. Pledges pawned for any sum exceeding $50.00, shall continue to be redeemable until it is disposed by way of auction sales.

Auction Sale of Unredeemed Articles

1. After the 6 months’ redemption period, all unredeemed pledges exceeding $50.00 in pawn amount will be put up for public auction usually in the second or third week of the following month. This process will enable the pawnbroker to dispose and transfer the legal ownership of the unredeemed articles.

2. Auction sales are a monthly affair and it is part of the pawnbroking business operation. Licensed Auctioneer, appointed by the Registrar of Pawnbrokers, will be responsible to conduct the pawnbrokers’ auction sale in strict compliance with the Pawnbrokers Act gazetted by the Ministry of Law.

3. Prior to the auction sales, advertisements will be published in major newspapers, giving notice to the public on the date, venue, viewing time, auctioning hours and list of participating pawnbrokers.

4. Any person including pawnbroker may bid for and purchase at the auction and will be deemed to be the absolute owner of the pledge purchased.

5. Any successfully bided pledge, which has been sold for more than the amount of loan plus interest and approved administrative fee, will generate a surplus to be returned to the pawner. The pawnbroker is obligated to inform the pawner by registered mail to collect the surplus.

6. Surplus arose by auction sale should be claimed from the respective pawnbroker within four months from the receipt of the notification. After which, unclaimed surplus will be forwarded to the Accountant-General of Singapore for safe keeping for six years and subsequently, converted into official fund if the surplus remains unclaimed.

Problem resolution

1. Any person claiming to be the owner of a pledge but not holding the pawn ticket, or any person claiming to be entitled to hold a pawn ticket by alleging that the pawn ticket has been lost, mislaid, destroyed or stolen or fraudulently obtained from him, may apply to the pawn broker for a printed form of declaration, which the pawnbroker shall deliver to him.

2. The applicant must deliver the form back to the pawnbroker and the applicant will duly make the declaration before a magistrate or a Notary of Public. And this declaration form shall then be treated as an equivalent of that original pawn ticket, having the same rights and remedies, and supersedes the lost one. The criteria limits the declaration form to be effectual only if it being delivered back to the pawnbroker within the three days from the day on which the form is obtained and certified by the pawnbroker.

3. Since the pawnbroker is demanded to have adequate insurance against the holding stock. When a pledge is destroyed, damaged or lost in the event and consequence of fire, robbery, theft, the pawnbroker shall nevertheless be liable, on application within the period which the pledge have been redeemable, to pay the value of the pledge after deducting the amount of loan given and interest due. Such value of compensation is assumed to be 50% more than the amount of loan.

4. Any pledge that is unlawfully pawned by a convicted person, after the seizure by the authorized police officer, will subject to the disposal and enquiry before Magistrate Court. The court will rule out, on proof of the ownership of the sized goods, order the delivery thereof to the rightful owner, either on payment to the pawnbroker of the amount of loan or any part or without payment, as to the court, according to the conduct of the owner and other circumstances of the case seems just and fitting.

Suspicious articles

In any case where, the pawnbroker reasonably suspects that the article offered in pawn has been stolen or otherwise illegally, clandestinely obtained. The pawnbroker has been given the right and power to seize and detain the person as well as the article and deliver as soon as possible into the custody of police officer, who shall convey the same before a magistrate, to be dealt with according to law.

If any person, produces, shows or offers to a pawnbroker a pawn ticket, or an item which the pawnbroker reasonably suspects to have been counterfeited, forged, altered or fake, the pawnbroker may seize and detain the person, the ticket, or item, and deliver into the custody of police officer.

Constant feedback of expectation and suggestion from the public, through the periodical implementation and enforcement of law and regulation by the registry, pawnbroking business upgrades the degree of transparency of the entire operation in most aspects. Also, application of modern equipments and instruments, gearing up with the fully computerized working sequence, produce both accurate and satisfactory input and output. All these key motivating factors have greatly contributed to the process of rejuvenation of the pawn-broking trade.

We would certainly continue to aim to achieve and sustain a more approachable and healthier image, progress and keep up with the pace of the modern era, and ultimately, provide a better service to the public.