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Pawning 101: Terminologies you Must be Familiar with Before Deciding to Pawn

When there’s a need for immediate cash, pawnshops are easily one of the few things people consider going to. The returns are fast and the process is easy, and unlike selling, pawning gives you a chance to get your item back once you’ve paid your loan. Before deciding to pawn an item, there are a few things you should familiarize yourself with in order to ensure a safe and rewarding transaction:


Pawnshops usually have a list of things that they can accept in exchange for a loan. This is what we call a “collateral” or an item of value that you pledge in order to secure a loan. These are, basically, the pawned items. Pawnshops or pawnbrokers may accept gadgets and jewelry that may prove to have significant value for monetary exchange. In Cebuana Lhuillier, we accept gold, diamond, and platinum jewelry and watches, as well as selected non-jewelry items such as cellphones and laptop computers.


When an item—or a collateral—is presented to a pawnshop, it has to be assessed for its worth—this is a process called “appraisal”. Some items become more valuable over time, while others diminish in value. The higher the value of your item, it follows that you’ll also get a higher loan.


The interest is the amount of money that you pay at a particular rate on a regular basis given you have been lent. This may also apply and vary for delaying the repayment of your debt.  Pawnshops vary in their interest rates.

Cebuana Lhuillier assures the highest appraisal and security for pawned items. Advance interest will be charged Php4 for every Php100 loan amount. To maintain the excellent standard of service offered by Cebuana Lhuillier, clients will be charged additional one percent (1%) of the principal loan, but not exceeding five pesos (Php5).


Ready to pawn your items? Visit the Cebuana Lhuillier branch nearest you– We assure you that it will be a fast, easy and secure transaction.

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