Group 5

Pawnshop
Group 5

● Joshua Miguel Aguilera

● Jana Aguelo
■ Jean Claire Keh
■ Thea Emavee Jen Sy
Pawnshop
- shall refer to a person or entity engaged in the business of lending money on
personal property delivered as security for loans and shall be synonymous, and
may be used interchangeably, with pawnbroker or pawnbrokerage.

- provide an additional source of credit especially for small borrowers left unserved by
the banking and other financial institutions in the country;
Group 5

Benefits of Pawnshops 5
No Effect
in the Philippines on Credit
History

1 Easy
2 3 4
and Fast No Credit Safe
Instant
Pawning Checks Transactions
Access to
Process with Licenced
Cash
Pawnshops
Group 5

Disadvantages of Pawnshops 5
Risk of
in the Philippines Getting
Scammed

1 2 3 4
High Pawn Low Too Short Risk of Losing
Loan Interest Appraisal Loan Terms or Damaging
Rates Pawned Item
 to regulate the establishment of pawnshops

Governing Law 02 and to place their operation on a sound and

stable basis to derive the optimum
PRESIDENTIAL DECREE No. 114 Section advantages from them as an additional
source of credit
January 29, 1973
Pawnshop Regulation Act

It is hereby declared the policy of the State to

regulate the establishment of pawnshops and to
place their operation on a sound and stable basis to
A pawnshop may be established as a
single proprietorship, partnership or 04
corporation. Section
derive the optimum advantages from them as an
additional source of credit;
 Registration and licensing

05 Any person or entity desiring to engage in the

pawnshop business shall
Section

Governing Law A register with the Bureau of Commerce in the

case of single proprietorship or the Securities
A
PRESIDENTIAL DECREE No. 114 and Exchange Commission in the case of a
corporation or any other association and
January 29, 1973
Pawnshop Regulation Act secure a license from the appropriate city or
B municipality having territorial jurisdiction over
the place of establishment and operation.
 Capital
The minimum paid-in capital of any

07 pawnshop which may be established after

the effectivity of this Decree shall be one
Section hundred thousand pesos (P100,000.00)

Governing Law
PRESIDENTIAL DECREE No. 114 Citizenship requirement
January 29, 1973
08 Upon the effectivity of this Decree,
only Filipino citizens may establish
Section and own a pawnshop organized in
the form of a single proprietorship.

Governing Law
PRESIDENTIAL DECREE No. 114
January 29, 1973
Amount of loan
09 Pawnshops may grant such amount of loans
as may be agreed upon between the parties.
Section
Rates of interest
10 No pawnshop shall directly or
indirectly stipulate, charge, demand,
Section take or receive any higher rate or
greater sum or value for any loan or
forbearance than the rate allowed by
the Usury Law for such transactions.
Pawnshop
In the
Philippines
Pawnshop
In the
Philippines
 Pawnshop

Definition of Terms

Pawnshop Pawner Pawnee

a person or entity engaged in the the borrower from a pawnshop the pawnshop or pawnbroker
business of lending money on
personal property delivered as
security for loans and shall be
synonymous, and may be used
interchangeably, with pawnbroker or
pawnbrokerage.
 Pawnshop
Definition of Terms
Pawn
the personal property
delivered by the pawner to the
pawnee as security for a loan
Pawn ticket
The pawnbrokers' receipt for a pawn.
It is neither a security nor a printed
evidence of indebtedness
Property
Only such personal property as
may actually be delivered to the
control and possession of the
pawnshop.
 Functions of Pawnshop
Offer
Lend Collateral
Money Loan
Pawnbrokers can lend Customers pledge property
money in minutes as collateral, and in return,
allowing the borrower pawnbrokers lend them
to prevent the long
money. When customers
process of getting pay back the loan, their
loans in banks. merchandise is returned to
them.
Offer
Microlending
Provides poor and low-income
households with credit that
would have not otherwise have
been available and increase
competition in the credit
markets by providing an
alternative source of credit