
The word pawn comes from the Latin word pignus or ‘pledge’, and the items being pawned to the broker are called pledges or pawns.
Pawnshops offer loans on collateral. This means that pawn shop loans are secured by something of value. A person needing money can take in anything that they consider to be of value, and if the broker is interested, the pawn shop will offer you a loan. The pawnbroker then keeps your item until you repay the loan. Pawnshops are regulated by 14 federal statutes and regulations, plus numerous state and local laws.

If you’re desperate for cash and have a treasure trove of high-value items, you might consider a pawn shop loan. When someone who needs a short term loan, they can take something of value to a pawn shop to pawn with a high chance that they will walk out with at least some of the cash they need.
If a customer decides to proceed with a pawn shop loan, you can get the cash right away. You’ll typically be required to pay back the full amount of the pawn loan to reclaim your pawned item, though the amount of time you have to repay the loan can vary from state to state.
For example: In Florida and North Carolina, state laws dictate that pawn shop loan contracts are 30 days, with an additional grace period. According to the National Pawnbrokers Association, the average pawn shop loan in the U.S. is $150.
You have 2 choices for repayment:
- Return to pay the balance, including the loan amount plus all added fees, before the time frame in which the customer loses the item. This is usually 1 to 4 months from the date of the original transaction.
- Don’t return and the pawnshop keeps your item. Aside from losing your item, there are no other consequences — no collection action and no effect on your credit report. On average, though, 80% of all customers do reclaim their items, according to the National Pawnbrokers Association.
The most significant drawback of a pawn shop loan is its cost. Pawn shop loans often incur high interest rates and finance charges. It’s common to see interest rates between 5% and 25% a month. Another disadvantage is that if you don’t repay your loan on time, the pawn shop can sell your item. Some pawn shops also charge additional fees to pay for things like renewing the loan for a new term, storage, and insurance.
Are Pawn Shops Open on Sundays?
Well, it depends.
Sundays provide convenient hours for pawn shop clients to come in and get a loan. Since clients tend to have more time during the weekend, then they may prefer to not be rushed like they might be on a weekday, particularly if they are working.
That said, the target markets for pawn shop clients usually isn’t vsiting pawn shops on Sundays. Small pawn shop owners mat also not have the staff required to be open seven days per week.