If you own or operate a pawn or jewellery shop and lend money to your customers in exchange for their goods, gold or silver, you enter into a pawn loan agreement (consumer credit agreement) with them.
This agreement contains among others:
- the terms and conditions of the loan
- your personal details and those of your customer
- information on the item secured against the loan (collateral)
Terms and conditions are for instance:
- the value of the item
- the applicable interest rate (this rate may not exceed 4.5%)
- the expiration date of the loan
Your customer has at least 2 months for paying back the loan and retrieving their item.
