Anyone can apply for a pawn loan.

In practice, however, it is the people who cannot or do not wish to apply for credit from the bank or a financial institution who use the pawnshop.

For example, you can apply for a pawnbroker loan if your income does not allow you to pay the monthly installments of a traditional loan or if you are registered at the Banque de France.

There is no means test to obtain a pawnbroker loan.

You will be able to get a loan in exchange for a deposit of a valuable object that will serve as security. It is said thatItem is pledged and you still own it. The property deposited to obtain a pawn loan may be a jewel, a watch, a painting, a musical instrument or any other valuable object.

If you don't repay your loan, the pledged item can be auctioned off.

Only a municipal credit union can offer the type on pawnbroker.

To get a pawnbroker loan, you have to go to a municipal credit institution.

You can't go to your regular bank.

You will need to present the following:

• ID
• Proof of domicile
• Item you want to guarantee
• Proof of ownership (for some objects).

The municipal credit union must provide you with the following information;

• Identity and geographical address of the lending agency
• Type of credit offered
• Indication of the assets which may be pledged
• Methods of valuing the property by appraisers
• Total amount of credit, and conditions for making funds available
• Duration of the credit agreement and renewal conditions, extension possibilities
• Interest rates charged
• Annual percentage rate of charge and total amount due by the borrower, based on a representative example
• Maximum amount of credit that can be granted
• Legal consequences of pledging the object
• Conditions for retrieving items before the end of loan
• Deposit of object recognition certificate
• Conditions for compensation in case of loss of the deposited object, and modalities for abandonment or return of the object in case of deterioration
• Terms and conditions for the public auction of the pledged item
• No right of withdrawal.

When you pledge an object, you must sign an act that affirms the pledge of the object. This document shall be drawn up in writing or on another durable medium.

The value of the object is estimated by an auctioneer appointed to the municipal credit union.

In exchange for the deposit of this item, you will be able to get a loan immediately.

If the municipal credit decides to grant you the loan, it will offer to complete and sign a contract.

The amount of the pawnbroker loan can be given to you in cash if it does not exceed €3,000.

If the amount exceeds €3,000, it must be paid to you by check or by transfer.

If the loan is rejected (or if you refuse the contract), the item will be returned to you.

The amount of the loan you can get is calculated based on the value of the object you deposit.

In general, the loan amount is less than or equal to 2/3 of the estimated value of the object.

If the object is platinum, gold or silver, the loan amount is less than or equal to 4/5^eme the estimated value of the object.

The interest rate on the pledged loan is set by the municipal credit union.

You may also be charged a custodial fee for the dropped item.

The interest rate and the fee for child care are specified in the contract.

The pawn loan must be the subject of a written contract between you and the municipal credit union.

The contract shall specify the following:

• Identity and geographical address of the 2 parties
• Date of document and signature
• Identification of the pledged item and its value estimated by the appraisers
• Accuracy of type of credit
• Total amount of the loan and conditions for making funds available
• Term of the loan and conditions for extension and renewal
• Interest rate on the loan
• Other costs related to the execution of the credit agreement and their conditions of modification
• Annual effective rate overall
• Total amount to be refunded
• Costs of non-performance of contract
• Reference to the obligation to surrender the deposit recognition
• Loan repayment terms
• Conditions for early repayment of the loan
• Terms of auction of the item and payment of the bonus
• Conditions for compensation in case of loss of the deposited object, and modalities for abandonment or return of the object in case of deterioration
• Mention of the obligation to inform the municipal credit union of the loss of the recognition of deposit of an object as pledge
• Return policy for the item in case of loss and management fees
• Information on the handling of disputes and the mediation procedure
• Information on the absence of the right of withdrawal
• Mention of your right to object free of charge to the use of your personal data for prospecting purposes
• Address of the Supervisory and Resolution Authority and the Administrative Authority for Competition and Consumer Affairs

The right of withdrawal does not apply to pawnbroking: this means that once you've signed your contract and pledged your item, you can't change your mind.

But, if you wish, you can repay the remaining amount to be paid at any time and recover the deposited property.

The contract provides for the duration of the pawnbroker loan, which is often six months or a year.

You must repay the loan before the end of the term stipulated in the contract, in order to be able to recover the item you pledged.

The situation varies depending on whether you can repay the loan on time or not: