About SMJ Pawnshop
SMJ Pawnshop is a registered loan lender in the Philippines. The pawnshop offers loans to borrowers who use their merchandise as collateral and, on complete repayment of the loan, they repossess their merchandise.
SMJ Pawnshop was established three decades ago and is headquartered at Aguinaldo Hi-way, Imus, Philippines. It is a money lending network in the Philippines, with offices in different cities. The pawnshop offers loans to borrowers against pawned items. The borrowers repossess their items after settling their loans fully. The commonly used items are jewelry, watches, cellphones, and laptop computers. The loan interest ranges between 3%-7% per month, and the minimum loan period is one week, while the maximum is four months.
Pros and cons
Pawnshops offer financial solutions to borrowers to cater to emergencies even when their credit score is bad. Before committing your valuables as collateral for a loan in any pawnshop, you should learn more about their terms and conditions. Every lender has advantages and disadvantages in the products and services they offer, and you should aim to benefit from the advantages and avoid the disadvantages. Here are some merits and demerits of SMJ Pawnshop.
Pros
It offers financial solutions to borrowers who could not access bank loans due to poor credit records.
The shop only requires proof of identification and collateral to offer borrowers a loan.
The approval process is fast and hence ideal for emergencies, like a sickness.
Cons
The pawnshop accepts ornaments, watches, and electronic devices as collateral, and the borrower will not access the loan if they do not have it.
Your item is sold, but you don’t access excess proceeds from the sale if you fail to repay the loan within the agreed term.
Their loan rates are higher than those of some banks.
Products
SMJ Pawnshop offers the following products and services.
- Fast cash loan. Borrowers access this service in times of emergencies, provided they have a valid bank account and proof of ID. After applying for a loan, it is approved and disbursed to the borrower's account within two hours after signing an agreement. The minimum loan amount is ₱1000, and the maximum is ₱50,000. The loan approval takes at most two hours. When the loan is authorized, the lender will charge a daily interest rate of 0.1% - 0.23%. The terms and conditions for the fast cash loan include a repayment period ranging from 7 to 90 days. If you do not repay the debt within four months, the pawn is auctioned off.
- Pawning. A borrower visits the shop with an item. After the lender determines its value, they give the borrower terms and conditions for the loan equivalent to the pawn value. The lender keeps the item until the borrower repays all the loans. Failure to repay the loan according to the agreement prompts the lender to sell the pawn and recover their money.
