Document background
The Pawn Shop Agreement serves as a fundamental document in Singapore's regulated pawnbroking industry, establishing the legal framework for transactions where items are pledged as collateral for short-term loans. This agreement, governed by the Pawnbrokers Act 2015, provides essential protection for both pawnbrokers and pawners by clearly defining the terms of the pledge, loan conditions, redemption rights, and default procedures. It must comply with strict regulatory requirements including maximum interest rates, mandatory redemption periods, and specific documentation standards.
