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

1. In accordance to the Pawnbrokers Act, a pawner must be of a minimum age of 18 years old. If the pawner is pawning on behalf of another person, the ID and authorization from that person have to be provided to the pawnbroker.
2. 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.
3. In general, gold ornaments, jewellery and watches will be based on the second hand resale value at the appraiser’s discretion.
4. Once the pawn amount is agreed and set, the pawner will be asked to produce his/her personal identity card to complete the transaction.
5. Measures pertaining to anti-money laundering and financing of terrorism will need to be imposed. These include the requirement to conduct Customer Due Diligence checks on pawners and to file reports on any suspicious transactions or circumstances.
6. With all necessary information provided, the pawn ticket will then be generated and the cash loan will be disbursed.
7. Pawn ticket
   1. The pawner is responsible for checking that the full and correct information is recorded on the pawn ticket.
   2. 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.
   3. Besides the full particulars of pawner being precisely captured, the pawn ticket also records the date of pawning, the validity of Redemption period of six months and the date of expiry.
   4. The chargeable monthly interest of not more than 1.5% per month or part thereof will be printed.
   5. 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.
8. The indicative valuation printed on the pawn ticket is not the price at which the pawnbroker will purchase the pledge; it is only used as a reference for the pledge’s underlying value. The pawnbroker is under no obligation to purchase the pledge from the pawner at the indicative value.
9. Pledges are to be redeemed or pawn validity extended within 6 months. Otherwise they will be liable to forfeiture without further surpluses due to the pawner.
10. Registered letter / email will be sent to the pawner if he or she does not redeem the pledge by the expiry date of the pawn ticket. The pawner needs to inform the pawnshop of any change in residential or email addresses.
11. The pawner is deemed to have agreed to allow the pawnbroker to collect, use and store his/her personal data in relation to the pawn transaction. The pawnbroker may also contact the pawner by phone, mail, email or SMS.

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%

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 charges will be imposed if the period for redemption has lapsed. 

Pawnbrokers can cater to various redemption options so as to help pawners redeem or renew within their affordable means:

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 is 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 on the remaining pawned articles becomes 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:
   1. 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 of the original pawn amount at the pawner’s discretion.
   2. 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. An increase of the loan amount is only possible if the articles were pawned at a much lower value previously as requested 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.

1. After the 6 months’ redemption period, all unredeemed pledges will be forfeited 30 days after the notice of forfeiture has been sent out to the pawner. This process will enable the pawnbroker to dispose and transfer the legal ownership of the unredeemed articles.

1. Lost of pawn ticket 
   A processing fee of S$10 will be charged for each application for a pawn ticket replacement.
2. A pledge wrongfully pawned 
   A processing fee of S$10 will also be charged for each serving of notice by owner of a pledge wrongfully pawned. Please furnish relevant evidence (e.g. a copy of police report). The pawnbroker may refuse to allow the redemption of the pledge for three months or longer, depending on the legal proceeding or the court order.
3. When a pledge is destroyed, damaged or lost. 
   Since the pawnbroker is required 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. Unlawfully pawned 
   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. 
5. Sales of Pawn Ticket 
   You are allowed to sell your pawn ticket to pawnbroker.

1. 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.
2. 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.

The Singapore Pawnbrokers Association aims to enhance the image of the industry, promote industrial advancement to keep pace with the changing times, and ultimately, to support the industry in providing better pawnbroking services to the public.

Through providing constant feedback on public expectations and suggestions, the Singapore Pawnbrokers Association aims to assist the pawnbroking industry improve on its degree of operational transparency. The Association also promotes the use of modern appraisal equipments and instruments to enhance valuation accuracy. These have contributed to the process of rejuvenating the pawn-broking trade.