page_title: Pawnbroker
section_title: In Asia
hierarchical_section_title: Pawnbroker / In Asia
context_page_description: A pawnbroker is an individual or business that offers secured loans to people, with items of personal property used as collateral. The items having been pawned to the broker are themselves called pledges or pawns, or simply the collateral. While many items can be pawned, pawnshops typically accept jewelry, musical instruments, home audio equipment, computers, video game systems, coins, gold, silver, televisions, cameras, power tools, firearms, and other relatively valuable items as collateral.
  If an item is pawned for a loan, within a certain contractual period of time the pawner may redeem it for the amount of the loan plus some agreed-upon amount for interest. The amount of time, and rate of interest, is governed by law and by the pawnbroker's policies. If the loan is not paid within the time period, the pawned item will be offered for sale to other customers by the pawnbroker. Unlike other lenders, the pawnbroker does not report the defaulted loan on the customer's credit report, since the pawnbroker has physical possession of the item and may recoup the loan value through outright sale of the item.
context_section_description: In Hong Kong the practice follows the Chinese tradition, and the counter of the shop is typically higher than the average person for security. A customer can only hold up his hand to offer belongings and there is a wooden screen between the door and the counter for customers' privacy. The symbol of a pawn shop in Hong Kong is a bat holding a coin (Chinese: 蝠鼠吊金錢, Cantonese: fūk syú diu gām chín). The bat signifies fortune and the coin signifies benefits. In Japan, the usual symbol for a pawn shop is a circled number seven (7) because "shichi", the Japanese word for seven, sounds similar to the word for "pawn" (質).
  The majority of pawnbrokers in Malaysia, a multi-race country wherein Malaysian Chinese consists 25% of the population, are managed by Malaysian Chinese. In Malay, pawn is called "pajak gadai". A valid and licensed pawnshop in Malaysia must always declare themselves as a "pajak gadai" or a pawn shop for their company registration. They must also fulfill the requirements of the Ministry of Housing and Local Government which states the pawn counter must not be higher than 4 feet, is bullet-proof, has stainless-steel counters/doors, strong rooms with automatic locks, safes, equipped with fully computerized system, CCTV, alarm, and pawnbroker insurance.
  In the Philippines, pawnshops are generally privately-owned businesses and are regulated by the Bangko Sentral ng Pilipinas (BSP). Pawnshops in the country traditionally have Spanish names beginning with "Agencia de Empeños" (lit. "Pawn agency"), contrary to "Casa de Empeños" in Spain and Latin America. Most pawnshops accept jewelry, vehicles or electronic valuables as collateral. They also offer various forms of other finance-related services such as remittance, bills payment and microfinancing. Therefore, they serve as financial one stop shops primarily to communities in which alternatives such as banks are not available. Recently, they have also started conducting services online and through mobile applications although this is yet subject to regulation by the BSP.
  In India, the Marwari Jain community pioneered the pawnbroking business, but today others are involved; the work is done by many agents called "saudagar". Instead of working from a shop, they go to needy people's homes and motivate them to become involved in the business. Pawn shops are often run as part of jewelry stores. Gold, silver, and diamonds are frequently accepted as collateral.
  Pawnbroking is also a traditional trade in Thailand, where pawn shops are run both privately and by local governments.
  In Sri Lanka, pawnbroking is a lucrative business engaged in by specialized pawnbrokers as well as commercial banks and other finance companies.
  In Indonesia, there is a state-owned company called Pegadaian which provides a range of conventional and Sharia-compliant pawnbroking services across the archipelago. The company accepts high-value items such as gold, motor vehicles, and other expensive items as collateral. In addition to pawnbroking activities, the company provides a range of other services, such as a safe deposit box and gold trading services.
caption: A typical Hong Kong pawn shop sign: a bat holding a coin.
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