How a Pawnshop Works

You pawn your valuables by surrendering them to the pawnbroker in exchange for cash. You redeem your valuables by paying back the capital, usually within four lunar months (one lunar month is 30 days), plus monthly interest of 3.5 percent. If you fail to repay the broker, he will then resell your valuables for compensation. Of course, if you can make the repayments before the four months are up, you can buy back your items with no additional surcharge. Besides watches and jewelry, some pawnshops these days even accept cellphones and digital appliances. But to prevent people trading stolen goods, customers must fill out a personal information form before pawning.

Also see: Hardcore Pawn