Pawn loan agreement

Do you own or operate a pawnshop or jewellery shop? And do you lend money to your customers in exchange for their goods, gold or silver as collateral? Then you enter into a pawn loan agreement (consumer credit agreement) with them.

What information do you put in the pawn loan agreement?

The pawn loan agreement contains among others:

• the amount of the loan
• your personal details and those of your customer
• information on the item secured against the loan (collateral)

You also need to put in the terms and conditions for the agreement, for instance:

• the value of the collateral and the total amount the customer has to pay you to get their collateral back
• the applicable interest rate and how you calculate the interest
• the expiration date of the loan
• other conditions, such as whether and how a customer can extend the duration of the agreement

Your customer has at least 2 months for paying back the loan and retrieving their item.

Maximum interest rate and extra costs

You can charge a maximum interest rate, but this rate may not exceed 4.5%. You are not allowed to charge for other things, such as storage, valuation, or administration fees, besides the interest.