Definition of Pawnshop According to Experts and Types (Complete)
Definition of Pawnshop According to Experts and Types (Complete) – There are many financial institutions in our country, one of which is a pawnshop. Pegadaian is growing quite rapidly and has branches that are increasingly accessible to the regions. Then what is the pawn shop? how is it different from a bank? and what are its functions?
Definition of Pawnshop According to Experts and Types (Complete)
To answer it all, let's look at the following explanation.
Definition of Pawnshop
The definition of a pawn shop is a financial institution, but not including a bank, where this pawn shop provides credit to the public, in a special way, namely pawn law. According to mortgage law, the prospective borrower here has an obligation to hand over the assets he has as collateral for the mortgagee.
This law contains the purchase of rights to the mortgage in selling or auctioning the collateral if here the time limit for granting a predetermined loan expires and the borrower does not redeem it guarantee.
Definition of Pawnshop According to Experts
There are also other definitions of pawnshops that have been put forward by experts, including:
1. Sigit Triandaru (2000: 179)
He explained that Pegadaian is the only business entity in Indonesia where this is officially licensed to carry out the activities of financial institutions in the form of payment for the distribution of funds to the public which is based on law pawn.
2. Subagyo (1999: 88)
In the opinion of Subagyo, Pegadaian is a financial institution which is not a bank as well as providing credit to customers or the public by using a special style, namely by law daai.
3. Susilo (1999)
He explained that Pegadaian is a right which can be obtained by someone who has receivables for movable property.
4. Siamat
Pegadaian is an institution that can provide services to the wider community and benefit from these services based on management principles.
5. Government Regulation (PP) No. 10 of 1990 concerning Pawnshop Public Companies
Pegadaian is one of the activities of guaranteeing valuables to certain parties, to get an amount certain money items that can be pledged to be redeemed in accordance with the agreement between the issuer and the institution pawn.
6. Civil Law Act (KUHP) Article 1150
Pledge is a right that can be obtained by a person who has a debt for a movable object that can be surrendered to him by the person who has the debt or another person on his behalf and also gives power of attorney to the person who has that debt. .
Taking payment for the item takes precedence over other debtors, except for fees to be able to auction it the goods and the costs that have been incurred to be able to save the goods after the goods mortgaged.
There is also the main task of the pawn shop, which is to provide loans to the wider community on the basis of pawn law, here so that the community is no longer disadvantaged because of the activities of illegal financial institutions and are more inclined to use funds by urging people like loan shark.
Pawnshop itself is included in one of the State-Owned Enterprises (BUMN), which is pawnshop it provides services to the wider community as well as cultivates the benefits of a regulatory base company.
Types of Pawnshops
There are also types of pawnshops including conventional and sharia pawnshops.
Conventional Pawnshops
Conventional Pawnshop, namely a government institution in which this agency provides loan money to customers based on pawn law. Conventional pawnshops themselves for existence have spread throughout the countryside. However, this type of pawnshop still uses a manual recording system, uses an interest system and the deposit service rates are quite large.
Sharia Pawnshop
Pegedaian Syarian is a type of financial institution or division of a form of pawnshop which provides loans in accordance with the principles of Islamic law. There are lots of advantages to be gained from this sharia pawnshop, including: using a profit-sharing system where this is appropriate in accordance with Islamic law and principles, the rates for saving money are also not too high, as well as very high administrative costs small. However, this sharia pawn shop still uses a manual recording system.
Pawnshop function
There are also functions of the pawn shop, including:
- As a manager in the distribution of loan funds in accordance with the law of pawning and in an easy, fast and safe way.
- Can manage in all forms of finance, personnel, equipment, education and training.
- Can create and develop businesses which can be profitable for the pawnshop itself and the general public.
- As the manager of the organization and procedures for implementing the pawnshop.
- As development and supervision for pawnshop management.
Pawnshop Purpose
- Able to implement and support government policies and programs in the field of national economy and development through lending based on the mortgage law.
- To be able to prevent the practice of debt bondage, illegal pawnshops, usury, and other improper loans.
- In order to be able to provide funds in a simple manner to the wider community, especially the lower middle class, for consumption and production.
Pawnshop Benefits
1. Benefits for Pawnshop Institutions
- Income earned from capital leases paid by borrowers of funds.
- Revenue earned from fees paid by customers
- Fulfilling Pegadaian's mission as a State-Owned Enterprise to be able to provide assistance to people who need funds in relatively simple procedures and ways.
- Pawnshop profits can be used for Development Funds (55%), General Reserves (20%), Purpose Reserves (5%) and Social Funds (20%).
2. Benefits for Pawnshop Customers
- Customers very quickly receive fresh funds from pawnshops based on various procedures that are relatively easier and simpler.
- Customers who will get a professional appraisal of the value of movable property.
- Customers who will get movable goods storage facilities that are safe and reliable.
Pawnshop Role
- Prevent the practice of debt bondage, illegal pawnshops and unreasonable loans.
- Playing a role in implementing and supporting the implementation of the national development system, generally disbursing financing or lending funds on the basis of pawn law.
- The use of interest-free mortgages against sharia pawns has several effects as a social safety net because people who need urgent funds are no longer entangled with non-financing loans flower.
Pegadaian Vision and Mission
Pawnshop Vision
To be the Most Valuable Financial Company in Indonesia and also the Community's First Choice Inclusive Financial Agent.
Pawnshop Mission
- Providing optimal benefits and profits for all stakeholders by developing the core business.
- Build a much more diversified business by developing new businesses to add value propositions to customers and stakeholders.
- Providing excellent service with a focus on customers
Pawnshop Disadvantages and Strengths
Lack of Pawnshops
- There must be a guarantee to get money.
- The money earned tends to be much lower than the actual price of the item.
- Items to be mortgaged must be handed over to the pawnshop so that the goods cannot be used.
- The amount of money that can be given is very limited.
Pawnshop advantages
- The time needed to get money is relatively short.
- Very simple procedure.
- Customers are given the freedom to use the money they get.
- There is no need to open an account like in savings or time deposits.
- There are many things that can be used as collateral.
- The term can also be extended if interest has been paid.
Thus a review and a brief explanation of Definition of Pawnshop According to Experts and Types (Complete), hope it useful for all Reader. Thank you so much 🙂
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