Pawnshops And Pawnbrokers Includes Ar-rahnu Companies in Malaysia

Pawnbrokers are people or businesses who lend money in exchange for personal property. Pawnshops are physical locations where pawnbrokers conduct their business. In Malaysia, pawnshops and pawnbrokers are regulated by the Malaysian Pawnbrokers Act of 1972.

Pawnbrokers typically lend money to people who do not have access to traditional forms of credit, such as banks or credit unions. The interest rates charged by pawnbrokers are typically higher than those charged by banks, but lower than those charged by payday lenders or other sources of high-cost credit.

Pawnbrokers typically require collateral in the form of personal property before they will lend money. The collateral is held by the pawnbroker until the loan is repaid, at which point the collateral is returned to the borrower. If the borrower does not repay the loan, the pawnbroker has the right to sell the collateral to recoup the amount of the loan.

Pawnshops are a common source of second-hand goods, as they often sell the collateral that has been forfeited by borrowers who have defaulted on their loans. Pawnshops may also buy second-hand goods from the general public.

Ar-rahnu companies