FAQs

Frequently Asked Questions

View our Frequently Asked Questions (FAQS) in relation to what is a vehicle pawn loan?

A vehicle pawn loan is a type of secured loan where a borrower uses their car or motorcycle as collateral to obtain a loan from a licensed pawnbroker. The pawnbroker retains the vehicle as security until the loan and interest are repaid. Once repaid, the vehicle is returned. If the loan is not repaid, the pawnbroker may sell the vehicle to recover the outstanding amount.

How do I repay my vehicle pawn loan?

Loan repayment is not required until the vehicle is redeemed (Picked up). At that time, the loan amount and interest is repaid in full. However, you may make periodic payments during the loan term to reduce your balance.

What interest rate applies to a vehicle pawn loan?

Loan interest is fixed at the beginning of the agreement and charged monthly. The rate is based on the amount borrowed and the loan to value ratio of the vehicle pawned.

Are vehicle pawn loans processed without credit checks?

Credit checks are not necessary when pawning your vehicle, as the loan is secured against the value of your asset.