CAVITE STATE UNIVERSITY

(CvSU)
Don Severino De Las Alas Campus (Main)
Indang Cavite
Tel. No. (046) 415-0013 Fax No. (046) 415-0012
E-mail: cvsu@asia.com

COLLEGE OF ECONOMICS, MANAGEMENT AND DEVELOPMENT STUDIES

Department of Management

PROPOSAL ON THE ESTABLISHMENT OF IgpawnShop

In partial fulfillment
of the requirements for the course FMGT55
Banking and Financial Institutions

Submitted by:

Group IV
Solis, John Michael A.
Tamagos, Pamela Ann L.
Tantiangco, Jared D.
Tepace, Alessandra J.
Vicedo, Ma. Franxinne D.
Yparraguirre Mj P.

BSBM FM 2-1

Submitted to:

Ms. Princess M. Feliciano

January 2023
 IGPAWNSHOP

I. INTRODUCTION

COMPANY PROFILE

Igpawnshop is a well established pawnshop company that focuses on offering a

wide variety of financial services to individuals in the Philippines especially to those

people in need. Pawnshop is one top choice of Filipinos to run to when they need urgent

financial help. It offers a variety of financial services that surely provide assistance to its

consumers.

Igpawnshop is a non-banking financial institution which provides a wide range of

goods and services to the consumers. One of its most recommended services is

micro-lending. Where clients bring valuable items if they would want to apply for a loan

at much lesser time. This item/s will be pawned to this institution, also referred to as

"collateral." It is more convenient to make such loans in Igpawnshop as client's only

need to present their valuable items in exchange for easy access loans.

Igpawnshop’s name is inspired by the word “Igpaw '' which means to leap or

overcome something. And it’s living its name because they offer loans to help the

individuals and accept different types of collateral including Merchandise, specifically

limited edition kpop/artists merchandise, Artworks, land title, luxury items such as bags

and accessories, Music instruments and gadgets. Igapawan-shop ensures that the

collaterals are valued and reviewed to ensure the customer receives their maximum

amount in need. They also take care of the individual’s belongings 100% safe and

secured in their custody.

 Igpawnshop understands that there are unexpected problems in our lives that

need to be solved financially. That is why they are committed to give their best to provide

financial loans to those people no matter how small or big it is. The goal of Igpawnshop

is to provide the best loan services to the people, that’s why they have low interest rates

and a fast and efficient loan process to meet their needs and solve their financial

problems with ease.

Igpawnshop’s group is devoted to providing the best offers and services as

possible. Listening and giving their customers the best services they need with a warm

welcome from their employees to give them comfort to lend their problems to them.

When visiting Igpawnshop, they will not only lend you financially, but they will also lend

their time and effort for you to show commitment that they will always strive to find a

solution that can work for them and with a team like Igpawnshop who cares about its

customers, they will make sure to meet all customer’s financial needs.

ORGANIZATIONAL STRUCTURE, MANAGEMENT AND GOVERNANCE

Igapawnshop used functional structure as an organizational structure.

Board of directors

Board of directors are responsible for making sure that the company is run in the

best interests of the shareholders. One of their main responsibilities is to establish an

effective reporting system and ensure that senior management is implementing it

properly. This reporting system should generate complete, accurate, consistent, and

reliable information.

Chief Executive officer

The Chief Executive Officer is responsible for creating high-quality business

strategies and plans that align with the Igpawnshop short-term and long-term objectives .

They lead and motivate subordinates to advance employee engagement and develop a

high-performing managerial team . The CEO is responsible for overseeing the

operations of the firm, formulating and implementing a strategic plan guiding the

Igpawnshop, and evaluating the progress and success.

Chief Operating Officer

The pawnbrokers are responsible for the pawn transactions. Its duty is to assess

the items, its value as used collateral for loan, its condition and authenticity. It is also

responsible for negotiating terms to which includes the loan interest rate, collateral

requirements, loan period and repayment schedules.

Pawnbrokers

The pawnbrokers are responsible for the pawn transactions. Its

duty is to assess the items, its value as used collateral for loan, its condition and

authenticity. It is also responsible for negotiating terms to which includes the loan

interest rate, collateral requirements, loan period and repayment schedules.

 Inventory Analysts

Inventory Analysts are the one who looks after the collaterals. It

maintains an accurate record of the items and maintains proper organization of it.

It also monitors and handles incoming and outgoing items. Which effectively

manages the pawn shop's inventory to maximize profitability while minimizing

risks and ensuring compliance with industry regulations.

Security Personnel

Security Personnel is responsible to provide security and safety of

the staff, customers and the Igpawnshop premises. Through surveillance which

monitors the premises, front door desk to check those coming in and coming out,

and also in particular part of the premises which are restricted to everyone.

Chief Financial Officer

A Chief Financial Officer is a senior executive responsible for managing the

financial actions of a company. In an IGPawnshop, the CFO is responsible for managing

the financial activities of the business. The CFO’s duties include tracking cash flow and

financial planning, as well as analyzing the company’s financial strengths and

weaknesses.

Controller

The controller, also known as the chief accounting officer, is responsible

for providing financial information and reports to support planning and evaluation

of company activities, including budgets and performance reports, for managers.

Additionally, they facilitate management decision-making by furnishing the

necessary information to shareholders. The controller oversees all financial

accounting reports and ensures compliance with tax filings for the Bureau of

Internal Revenue. Moreover, they coordinate with the firm's external auditors to

facilitate audit activities.

Treasurer

The treasurer oversees cash management activities, including monitoring

cash flow, optimizing liquidity, and managing banking relationships. It is also

responsible for assessing and managing financial risks associated with

pawnshop operations, such as credit risk and interest rate risk.

Organizational management should be able to fulfill their specific roles

and responsibilities given to them, but they also need to have communication,

cooperation and healthy collaboration with each other. The whole management

must work with respect and integrity to each other, having one mindset to reach

the goals of the business.

The standard practices are shown below based on the general guidelines

on ethical behavior and what the organization management should strive for:

● To treat Co-employees and the clients with utmost respect

● To maintain personal and professional integrity

● Promote responsible borrowing

● Must abide in the truth in lending act

● To be objective in disclosing information/Transactions

COMPANY GOALS AND OBJECTIVES

Goals

Igpawnshop’s goal is to become a major financial service that has access

points to reach the financially unserved and underserved areas of the country.

Objectives

Igpawnshop’s general objective is to help the people financially by giving

its full time lending services and focuses on offering more convenient and reliable

services that helps every single potential client to lessen their problems

financially.

The specific objectives of Igpawan Pawnshop are :

● To provide safe and secure pawning activities and secured the collaterals

under the pawn shop's custody in exchange of money.

● To provide the best micro lending services in the country which are a vital

source of credit and offer various series of services that helps potential

clients

● To give assistance financially by obtaining affordable loans with a very low

interest rate and at least no transaction charges for the low to middle

income households that need cash right away through pawning.

MISSION AND VISION

VISION

To become one of the fastest and reliable leading pawnshops in the Philippines

offering superior financial services to all individuals.

MISSION

Our mission is to help the underserved and unserved Filipinos to help them

improve their quality of life by providing them easy access to financial services while

consistently developing, adapting and fully utilizing integrated and new technology for

faster and efficient transactions

COMPANY LOGO

The Igpawnshop logo is in a circular background that symbolizes continuous

connection with customers. It has an element of jumping man as the customer who

wants to igpaw or to overcome a challenge, trying to jump off to the striking line of the

shooting star which represents the rapidity of transaction to reach the star which is the

convenience of life.
 Above the striking line, between the man and the star is the word Igpawnshop

which is the intermediary for the two. While beneath it is the hand holding the peso

money, which is the center of this transaction, to which plays an important role in the

institution. It is the key for man to reach a convenient life through Igpawnshop. Lastly, the

half circle locking the money inside which represents a strong boundary and a thick wall

to ensure security of all.

Principal Element :

1. Jumping Person represents the meaning of igpaw which is to jump off and also

represent the customer of the institution.

2. In shooting stars, the star represents the goal of achieving a convenient life, while

the striking line represents the rapidity and quickness of transaction in this

institution.

3. Hand with Philippine currency placed beneath the shooting star as it plays a

pivotal role in the institution, it is the center of all the transactions which will help

the customer achieve convenience in life.

4. The half circle represents a strong boundary, a thick wall to ensure security of all

transactions within the institution.

5. IGPAWNSHOP is placed above the shooting star line strike and between the

man and the star, for it will be the intermediary to help the man (customer)

achieve the star (convenient life)

Colors

1. The Gold color symbolizes solidity, stability and trust.

2. The Green color symbolizes wealth and growth.

3. The Black color symbolizes sincerity, eagerness and perseverance.

 4. The Red color on the IGPAWNSHOP text is associated with the institution's

passion, boldness, and proficiency.

Font or typeface

IGPAWNSHOP uses shrikhand font to symbolize authority and flexibility. It is in

the form of bold, capital, and double lining letters to represent the strong foundation of

the institution and its strength to adapt to changes.

Shape

The circle shape represents an unending cycle of unity and connection which is

associated with balance integration that emphasizes safety and reliability of the

institution.

COMPANY TAGLINE

“Igpaw Pasulong, Turning Properties into Opportunities”

The phrase "Igpaw Pasulong," is emphasizing the idea that Igpawnshop is a

place where people can move forward and make progress in their financial lives. We’re

encouraging our customers to think about their long-term financial goals and how

Igpawnshop can help them achieve them. By adding, "Turning Properties into

Opportunities' ' it speaks to the unique service that Igpawnshop provides. When people

bring their properties to us, we're able to offer them a loan in exchange for collateral.

This allows our customers to access the cash they need quickly, without having to sell

their assets outright. By doing so, we're helping our customers unlock the potential of

their properties and turn them into opportunities for financial growth.
 Overall, our tagline highlights the unique and valuable service that Igpawnshop

provides to its customers. By emphasizing the idea of moving forward and progressing,

we're encouraging our customers to think about their long-term financial goals and how

Igpawnshop can help them achieve them. And by emphasizing the idea of turning

properties into opportunities, we're highlighting the unique service that we offer and the

ways in which it can help our customers unlock the potential of their assets.

TARGET MARKET

Igpawnshop targets individuals with financial instability who cannot secure loans

from traditional banks due to low credit scores, collateral, or insufficient documentation,

including both rural and urban populations, with a particular focus on low-income

individuals lacking access to established financial institutions.

In rural areas, Igpawnshop aims to serve small farmers, self-employed

home-based entrepreneurs, and individuals engaged in small-scale income-generating

activities. These individuals often face challenges accessing credit due to the lack of

formal documentation and collateral required by traditional banks. Igpawnshop's

microfinance programs provide capital for business investments, essential goods

purchase, and managing unexpected expenses.

In urban areas, Igpawnshop's target market includes shopkeepers, service

providers, artisans, street vendors, and other individuals engaged in small-scale

income-generating activities. These individuals may face similar challenges accessing

credit due to a lack of formal documentation and collateral. Igpawnshop's diverse range

of financial offerings, including microfinance loans, savings accounts, and insurance

products, can help these individuals manage their finances.

 Igpawnshop's mission is to serve the poor and vulnerable non-poor with

generally stable sources of income, including those who may not be considered "poor"

by traditional measures but still face financial instability due to low wages, irregular

income, or high expenses By providing these individuals with access to financial

services, Igpawnshop aims to help them manage their finances, build assets, and

improve their overall economic well-being.

PRODUCTS AND SERVICES OFFERED WITH APPROPRIATE PRESENTATION AND

DISCUSSION OF EACH TERMS AND CONDITIONS

In this age of technology, Pawn Shops offers a new variety of financial services.

Many Individuals favor this kind of change because nowadays many pawn shops are

being built near rural areas which gains the individuals easy access to meet their

financial demands.It is one top choice of Filipinos to run to when they need urgent

financial help.

Igpawnshop is a non-banking financial institution which provides a wide range of goods

and services to the consumers. One of its most recommended services is micro-lending.

Where clients bring valuable items if they would want to apply for a loan at much lesser

time. This item/s will be pawned to this institution, also referred to as "collateral." It is

more convenient to make such loans in Igpawnshop as client's only need to present their

valuable items in exchange for easy access loans.

The pawnbroker will only return the item/s once the client has already paid its loan with

corresponding interest. Aside from that, the institution also offers money changing,

buying of valuable merchandises, jewelries and gadgets, cash in and cash out on Gcash

and Paymaya, and E-loading.

TERMS AND CONDITIONS

PAWNING

(1) Client's must present the valuable item/s to the institution.

(2) Upon checking the item/s, pawnee will issue an appraisal form containing the

appraised value of it.

(3) Client's may either accept, negotiate or decline the offered value.

(4) Once decided, pawnee and the pawner have to agree on the loan value, interest it

includes, time period, and repayment method. It will be secured through signing the

agreement which both parties will have a pawn ticket as its copy.

(5) Interest on the loan depends on the appraisal value of the item. In addition,

Igpawnshop will charge the client an additional one percent (1%) of the principal loan,

but not exceeding five pesos (Php5). Interest is given in accordance with Usury Law,

Republic Act No. 2655 which sets the maximum allowable interest rates for loans and

prohibits the charging of usurious rates. No other hidden charges will be deducted from

the loan.

(6) This loan is open for renewal upon the agreement between Igpawnshop and the

client subject to the same requirements for a new loan.

(7) On the maturity period, as indicated in the agreement, the pawner has 90 days from

maturity period to claim the pawned item together with its payment for the principal

amount and the interest that shall accrued thereon.

(8) The pawner agreed that there is an additional 1.5% interest every subsequent month

after the maturity period as the overdue fee. This is for only 3 months.

(9) If the ticket needed for claiming the item has been lost, the pawner needs to present

an affidavit in lieu of the original pawn ticket or must request to Igpawnshop a

replacement ticket that will void the original. This is subject for acceptance to the

pawnshop.

(10) The pawner agrees that Igpawnshop can sell the pawned item/s at the time that

he/she cannot pay the loan with interest plus overdue fee.

(11) Amount exceeds the selling price over the principal loan does not guarantee that it

will be given back to the pawner.

(12) A Pawnshop must exercise reasonable care and diligence that a reasonably

prudent person would exercise with respect to the ownership of the collateral pursuant to

Republic Act No. 386 (Philippine Civil Code), as amended. Therefore, the Pawnshop

shall ensure all pawned items, except those kept in fireproof safes, in accordance with

the relevant regulations of the Bangkok Sentral ng Pilipinas.

(13) Upon force majeure where item/s has been lost or damaged, the pawnee holds no

responsibility of any liability. If the loss or damage is caused by the pawnee, it is

responsible for an amount of liability in accordance with the appraised value stated in the

ticket.

(14) These terms and conditions are final and non-negotiable. Pawners must read and

understand its contents before signing. Ignorance of the T&Cs holds the pawner's

accountability to comply. As likewise to the "Ignorance of the law excuses no one."

MONEY CHANGING

(1) Igpawnshop Money Changing (IMC) policies, such as Know Your Customer (KYC)

standards, and AML-TFP legislation apply to all parties and transactions under IMC.

Customers with pertinent business interactions must complete a Customer Information

Sheet (CIS) and provide a legitimate ID as part of KYC standards. Additionally, a photo

of the client and their ID must be taken. In accordance with KYC regulations, consumers

may be asked questions and given extra documentation requests. Any foreign exchange

transaction and its employees deemed to be in breach of AML-TFP legislation, rules,

regulations, or other applicable laws may be refused acceptance. They won't be held

accountable for this kind of rejection.

(2) The client gives Igpawnshop employees permission to verify the bank notes'

legitimacy and validity. Only banknotes that are deemed legitimate and non-demonetized

by the staff members will be taken into consideration for exchange. When the staff

declares it invalid, at its sole discretion, that a bill is unacceptable or demonetized, it

retains the power to reject a foreign exchange transaction. Such a rejection will not

subject the pawnshop or its staff to liability.

(3) Money changing transactions can be done only in face to face transactions in its

regular business hours in every branch of the Igpawnshop in the country.

(4) The foreign exchange transactions are applicable to change daily without prior

notice. The Igpawnshop staffs will put a daily-updated exchange rates so the customers

could check and understand the foreign exchange computation equivalent in Philippine

peso.

(5) Once the Igpawnshop staffs give the Money exchange receipts, the transaction can

no longer be canceled except to the foreign bank notes that are confiscated due to its

unlawful presence

(6) Customers are given a chance to check the receipt of the transaction before leaving

the area of the pawnshop. If the customer left the pawnshop without any complaints, the

transaction Is deemed valid and correct.

BUYING OF MERCHANDISES

(1) Clients must present necessary documents, proof of ownership or legal right to sell

the item together with at least one (1) valid ID. It is secured in accordance with the Data

Privacy Act of 2012 (Republic Act No. 10173).

(2) The item's condition will be checked, it must be in good condition, for jewelry

depends on gold karat, gemstones, precious metals, and etc. It must also comply with

the authenticity and originality of the item.

(3) Igpawnshop has the right to refuse the item if the checking result is fake or does not

meet the required criteria.

(4) Igpawnshop will issue an appraisal value. The agreed-upon purchase price will

depend on appraisal value.

(5) Transparent pricing, fair customer treatment, and disclosure of rights and

responsibilities like allowing them to negotiate is provided in Igpawnshop pursuant to the

Implementing Rules and Regulations of the Pawnshop Regulation Act (BSP Circular No.

472, Series of 2004, as amended).

(6) Documentation for transfer of ownership, giving the client a copy to ensure clarity of

buying and selling transactions.

(7) Clients have the power to choose a payment transfer method.

(Repurchasing of the items is possible, but the client is not deemed to purchase it at the

same price. Igpawnshop has the control over its selling price the moment that ownership

was transferred to the institution. )

(9) These terms and conditions are final and non-negotiable. Clients must read and

understand its contents before transactions. Ignorance of the T&Cs holds the client's

accountability to still comply. As likewise to the "Ignorance of the law excuses no one."
MARKETING STRATEGIES TO PERSUADE POTENTIAL CLIENTS/BORROWERS

1. Content marketing

Content marketing involves creating and sharing valuable content to attract and

retain customers. can create blog posts, infographics, and videos, and this content will

provide useful information to target our audience.

2. Social media platform

Social media platforms such as Facebook, Twitter, and Instagram are great tools

to promote the igpawnshop. Can create a post with updates about services, promotions,

and other relevant information.

3. Face to face

Face to face marketing involves attending events, conferences, and other

gatherings to promote the igpawnshop. Staff will set up a booth, hand out flyers, and talk

to potential clients and customers.

4. Referral

Referral marketing involves encouraging our existing clients and customers to

refer their friends and family to our business. They can easily earn 500 pesos by

referring their friends and family members

5. Create a Business Website

Creating a business website involves building a website that represents

Igpawnshop on the internet. It is a way to showcase our services.

 II Body of the proposal

CAPITAL REQUIREMENTS

Igpawanshop has a minimum paid in capital of Sixty Million pesos (Php

60,000,000) worth of cash and other tangible assets such as property land, machinery

and equipment etc. Based on the Revised manual for regulation of Non bank Institutions

under Capital Requirement, Tangible properties shall be limited to those that are

necessary for the conduct of the pawnshop business and the value of tangible properties

contributed as capital not exceed twenty five percent (25%) of said paid in capital.

Igpawnshop is classified under Type C classification of pawnshop operator license with

more than Ten (10) branches across the country with the available services of pawning,

microlending, money exchange, E-loading services, collateral loans such as title of land,

merchandise, art collections, instruments, accessories, and gadgets.

Based on the circular no. 938 of the Bangko Sentral ng Pilipinas (BSP) under

capital requirements of a pawnshop, these are the basic qualifications of pawnshops in

terms of capital, branch number and services offered :

I. Every pawn shop shall have a minimum paid in capital of one hundred

thousand pesos (Php 100,000)

II. Type A pawnshops with a minimum capital of one hundred thousand

pesos (Php 100,000) with basic pawnshop operations with not more than

10 branches

III. Type B pawn shops with a minimum capital of one million pesos (Php

1,000,000) and has more than 10 branches with or without BSP

Registered corollary activities excluding remittance operations

IV. Type D pawn shops with at least Fifty million pesos (Php 50,000,000) paid

in capital and have virtual pawnshop operators or those engaged within

pawnshop business through electronic pawning.

REGULATION ON OPERATION

I. Qualification Requirements

The applicant must adhere to all the terms and requirements to be approved for

the loan. These are the following:

● Showing valid information or a valid ID is necessary to verify the

applicant's identity and prevent fraud.

● Local resident for at least 6 months. This is to ascertain if the individual is

indeed a resident of the area and not just providing false information.

● No unpaid loans with other financial institutions and with Igpawnshop to

ensure proper repayment.

II. Documents Record

The Igpawnshop values its customers, which is why they ensure that their

documents are accurate. They make sure that the recording is correct, starting with the

borrower's name, the date of pawning, and the item pawned. Through this process, they

can identify and avoid problems or unnecessary events. Moreover, it allows them to

monitor all transactions and ensure that the payments are correct or that the due date for

repayment is accurate. By ensuring every detail, the customers are provided with

comfort and confidence to entrust their concerns with the Igpawnshop.

III. Repayment Method

It will be secured through signing the agreement in which both parties will have a

pawn ticket as its copy. At Igpawnshop, the payment must be settled before the due date

or on the same day as the due date. If the payment surpasses the due date, additional

interest will be incurred. For those having difficulty paying their loans, they can opt to

reduce the principal amount whenever they have extra money or every two weeks, so
the burden of payment isn't too heavy and they can still adhere to the proper payment

schedule. Because Igpawnshop cares for its customers and ensures their financial

needs are met.

IV. Substantial Security

Igpawnshop values the safety and security of applicants, especially in lending.

Thus, the collateral becomes valuable as a substitute for money for those in need. So, if

the borrower fails to comply with their obligation, the pawnbroker has the capability to

sell it to other applicants because the borrower did not meet their obligation. The

pawnbroker can only return it when the borrower has fulfilled their obligation or paid the

correct loan amount.

V. Assurance for Beneficiaries

Igpawnshop is widely recognized and aspires to be one of the most reliable and

easily accessible pawn shops to assist people in need. The name "Igpawnshop'' is

associated with overcoming challenges, and through Igpawnshop, they ensure that

collaterals are valued and reviewed to ensure customers receive what is correct and

necessary. Igpawnshop understands the unexpected financial challenges in life and is

ready and committed to providing the best offers and services needed to resolve them.

VI. Customer loyalty programs

Pawnshop will appreciate its long-time customers. Through this type of operation,

Igpawnshop offers varieties of perks and discounts to its potential customers. If you are

a 1 year client/customer of Igpawnshop, you can receive a 10% discount on all of the

products offered. You can also avail an Igpawnshop card to save up points in every

transaction you do and in loans the interest may decrease, this may be acquired when
the customer meets the standards like repeatedly acquiring Igpawnshop's service,

renewal of loans and no delayed repayments.

VII. Educational outreach programs

Igpawnshop also cares about the environment and the community it’s living in, so

Igpawnshop understands the importance of paying back the community quarterly

engagement in financial activities such as workshops/ seminars for free. These events

can be helpful to those individuals who are struggling with limited financial resources to

make such good financial decisions.

REGULATION ON THE 5 C’S

CHARACTER

In terms of character, The Igpawnshop must verify the borrower’s identity and

credit history before approving a loan. This means that the pawnshop will check if the

borrower has a good track record of repaying debts.

CAPACITY

Igpawnshop will evaluate the borrower’s income, expenses, and other debts to

determine if they can afford to repay the loan. The Igpawnshop will calculate the

borrower’s debt-to-income ratio by dividing the borrower’s total monthly debt payments

by their gross monthly income. This ratio helps to determine if the borrower can afford to

repay the loan.

CAPITAL

Igpawnshop offers loans to individuals and accepts different types of collateral to

ensure that the borrower has enough assets to repay the loan. Loans are easy to obtain

by giving collateral items like jewelry and gadgets. If the borrower fails to repay the loan,
the pawnbroker has the authority to sell the collateral to other clients. The pawnbroker

will only return the item(s) once the client has paid the loan with corresponding interest.

COLLATERAL

Igpawnshop requires collateral to secure the loan. This means that the borrower

must provide an asset of value that can be sold to repay the loan if they default. Such

assets can include land, merchandise, art collections, instruments, accessories, gadgets,

Kpop merch, international artist merch, and other collections.

CONDITIONS

The pawnee and the pawner have to agree on the loan value, interest it includes,

time period, and repayment method. It will be secured by signing the agreement, for

which both parties will have a pawn ticket as a copy. These terms and conditions are

final and non-negotiable. Pawners must read and understand its contents before signing.

REGULATION ON COLLECTION AND PROCESS

At IGPAWNSHOP, we are dedicated to offering an organized collateral

conversion process. The regulations listed below are intended to promote efficiency,

transparency, and a great experience for our valued consumers.

Procedure for Collection and Process:

1. Customers can initiate the pawning process through the official IGPAWNSHOP

mobile app or website, filling out necessary details and scheduling an

appointment for branch visitation.

 2. Upon visiting the selected branch, customers present their collateral along with a

government-issued ID and any supporting documents. A digital fillable form

captures personal details and item information.

3. Our trained personnel verify the customer's identity and assess the collateral's

value promptly. Instant appraisal ensures customers receive a fair loan offer

based on the item's worth.

4. Customers receive a clear, concise agreement outlining the loan terms, including

interest rates, deadlines, and penalties for non-compliance. Any queries are

addressed by IGPAWNSHOP staff.

5. To simplify the process, customers digitally sign the agreement using a secure

platform. Both parties receive a copy of the agreement, ensuring transparency

and clarity regarding the terms.

6. Upon agreement signing, customers receive the approved loan amount either in

cash or through preferred digital platforms like G-cash, Paymaya, or E-loading,

providing flexibility and convenience.

REGULATION ON INTEREST AND PENALTIES

IGPAWNSHOP believes in fair and transparent financial practices. Our interest

and penalty regulations are designed to be clear, reasonable, and accommodating to

customers.

1. A minimal fee of Php 5.00 is charged for each pawning transaction, ensuring

accessibility for customers with varying financial capacities.

2. The interest rate for pawning transactions is directly linked to the item's appraisal

value, ensuring transparency and fairness in pricing. The following are appraisal

value range and its corresponding interest rate :

● Low Appraisal Value Range (0 - ₱5,000):

Interest Rate: 4% per month

● Medium Appraisal Value Range (₱5,001 - ₱25,000):

Interest Rate: 3% per month

● High Appraisal Value Range (₱25,001 and above):

Interest Rate: 2% per month

3. Additional 1.5% overdue interest is charged for each subsequent month, it is

applied after the maturity period and is only for 3 months before the Pawn Shop

sells or auctioned the collateral.

4. Customers have the flexibility to make advance payments, helping reduce the

burden of future payments. Once processed, advance payments are

non-refundable.

5. In cases of repeated defaults, a temporary ban of one year is imposed on the

specific branch. During this period, the item cannot be returned to the borrower,

emphasizing the importance of timely repayments.

 III. COMPANY STRENGTHS AND WEAKNESS

5 STRENGTHS

1. Bringing financial services to people who need it and making it applicable to all
financially unstable.
2. They provide fast assistance to people in need by pawning their belongings for
collateral.
3. They prioritize confidential transactions for the personal information of the
borrower.
4. They offer low interest rates and at least no transaction charges for low to
middle-income households in need of immediate funds.
5. They offer hassle-free online transactions through Gcash, PayMaya, and
E-loading when purchasing jewelry or accessories and other valuable items.

5 WEAKNESS

1. Igpawnshop provides small loans compared to larger financial institutions.

2. The interest rates charged by Igpawnshop may be perceived as high when

compared to traditional banks.

3. Emphasizing online transactions raises cybersecurity concerns and data

protection.

4. The value of non-traditional collateral items, like merchandise and artworks, may

depreciate over time.

5. Igpawnshop handle valuable items, exposing them to the risk of theft and fraud.
INSIGHTS

Banking and Financial Institutions is an instrument that provides individuals an

access to a wide range of financial services. It was established to provide security, as

playing an important role in stabilizing the financial system and mitigating risks. They act

as the intermediaries ensuring smooth flow functioning within the financial markets. It

helps maintain the integrity and resilience of the financial system, keeping it away from

possible financial crises. It also supports the entrepreneurship industry by providing

financing, advisory services, infrastructure for startups and businesses who aim to

innovate. Through its wide range of services, it opens opportunities to individuals to

access financial resources that can be used purposefully which drives economic

progress.

Igpawnshop is one of the non-bank financial institutions which gives easy access

loans to individuals. It serves as the market where an individual is exposed to many

services that can be enjoyed without any difficulty. It gives convenience to the individuals

unlike in other financial institutions that need a lot of requirements and more time to

process before they are given financial assistance or services. In Igpawnshop, we help

to reduce time that an individual may consume for providing documents, and we allow

them to access our services easier by offering a quick and accessible solution for

obtaining short-term loans without the need for lengthy approval processes or collateral

requirements. We are also not limited to usual collaterals, as we have expanded it to

more merchandise like kpop merches, international artist merch, artworks and more. It

serves as a valuable resource for the community, offering access to financial services,

promoting financial inclusion, supporting entrepreneurship, and contributing to

sustainable consumption and economic development.