The first pawnshops appeared in the 15th century and continue to develop successfully. Unlike their predecessors, today they are legal entities that provide the population with short-term loan services secured by vehicles, cars, real estate and other property. What distinguishes them from banks and credit organizations is the possibility of accepting valuables, antiques and other expensive items as collateral. But unlike other lenders, whose main condition is to provide a set of documents to approve the loan application, this is not required when contacting a pawnshop. Does a pawnshop need a passport or a document equivalent to it? In the absence of an identification document, the visitor will be denied a loan, even if there is a large collateral.
Passport and pawnshop - what is the connection?
It would seem, why do you need a passport in a pawnshop if the client recognizes his item from thousands of similar ones? In the Middle Ages, when legislation could not adequately regulate many issues in the field of trade, pawnshops did not require any documents to provide loan funds. In the 19th century, legal entities carried out their activities in accordance with legal requirements. To minimize financial risks and confirm the correctness of the services provided, when servicing in a pawnshop, you need a passport.
A pawnshop without a passport can issue borrowed funds to a citizen only if the client has another official document, and this right is specified in the organization’s charter. Other documents accepted as identification of the client may be:
- Foreign citizen's passport
- Residence permit in the Russian Federation
- Certificate of a military serviceman of the Russian Federation
- Seaman's passport
- Military ID
Is a passport required if a client applies for the return of a deposit held at a pawnshop? Yes, the document is required both when issuing borrowed funds and when returning the collateral and paying interest.
However, in exceptional cases, for example, when a passport is replaced due to age or all documents are stolen, it is possible to contact a pawnshop without a passport. You must have an identification card in Form 2P and confirmation from law enforcement agencies (in exceptional cases). They have no right to refuse service - such certificates are accepted even in state banks.
Why do you need a passport to apply for a loan?
Any client over 18 years of age can apply for a loan. All you need to receive money is a passport. Any pawnshop issues money only upon presentation of the client’s passport and collateral. This is the only strict requirement of modern pawnshops. Why is an identity document required? A passport is necessary for the correct processing of a loan, and serves as some guarantee of the integrity of the transaction. Other identification documents will not be suitable.
The client's passport data is entered into the deposit ticket. Using your passport and pawn ticket, further interaction between you, as a client, and the pawnshop, as the organization that provided the loan, will be carried out. You must also take your passport with you when returning the deposit or extending the loan term. Any financial payments between the client and the pawnshop must be made with a passport. If the client does not want to provide a passport at the time of applying for a loan, the right to refuse him remains with the pawnshop.
Someone else's passport in a pawnshop
In a pawnshop, you can pay off interest for other borrowers: it is prohibited by law to carry out any transactions with someone else’s passport, so the depositor must have his own identification document and information about the borrower.
Why does a depositor need a passport if he is not going to pick up/borrow from a pawnshop? As in banks, the provision of credit funds and their repayment must be confirmed by appropriate papers, and clients must have an identification document with them. An important point: you can pay interest and a loan for another client with your passport at a pawnshop, but only the one who handed them over can take away the valuables - a relative, an acquaintance, any other person with someone else’s passport without the personal presence of the owner of the property has no right to take anything! Exceptions are authorized persons who have a notarized document in their hands, which states the right to receive the owner’s things deposited as collateral. Do they need a passport at the pawnshop? Undoubtedly.
Citizens who are deprived of any other opportunity to quickly find loans from other credit institutions decide to receive funds secured by valuables. For them, this is the last option; such clients do not question why a passport is needed in a pawnshop. But there are people whose activities are aimed at making a profit by any means, even if they have to break the law.
Documents for pledging gold to a pawnshop for residents of the Russian Federation
To make a pledge, residents of the Russian Federation and foreign citizens need different documents. Let's start simple.
Passport of a citizen of the Russian Federation
The main document for a citizen of the Russian Federation for registering a pledge in a pawnshop is a passport. It is important that the passport is valid. The passport must be changed upon reaching 20 and 45 years of age and when changing your last name.
But sometimes mistakes happen and absolutely normal passports are considered invalid. You can check your Russian passport using the Ministry of Internal Affairs passport database.
If your passport is mistakenly considered invalid, you need to contact the passport office for a certificate stating that everything is in order with your passport. While the Ministry of Internal Affairs corrects the error with your passport, you will be able to make financial transactions upon presentation of this certificate.
Foreign passport of a citizen of the Russian Federation
Sometimes, while the bond is in effect, the passport is lost or needs to be replaced. In this case, you can provide a foreign passport and perform any operation.
Yes, this document is also considered a proof of your identity not only abroad, but also in the Russian Federation. Using it, you can register a pledge of gold in a pawnshop and buy it back.
Do not forget that the international passport also has a validity period of 10 years.
Military ID of a citizen of the Russian Federation
A military ID is a document that can also be used to pledge gold at a pawnshop. But only if you are an active soldier or officer currently serving on an urgent or contract basis.
In this case, your military ID will indicate that you served in any part of the country.
The military ID that you were given at the age of 16 or after completing military service is not suitable for registering collateral in a pawnshop. This is not a document that people change when they change some data, the same last name.
Therefore, a military ID is considered a valid proof of your identity only when you are serving .
Temporary identity card of a citizen of the Russian Federation
For those cases when you lose or change your passport and you need to contact financial institutions, we have come up with a temporary identity card. This document is also suitable for registration as a pledge of gold in a pawnshop.
A temporary identity card for a citizen of the Russian Federation is issued in the same place where you get a new passport. Usually this is the MFC. You will not be automatically issued a temporary ID; you must request it. It is usually issued within 20 minutes. To do this, you will additionally need to provide your photo.
A temporary identity card for a citizen of the Russian Federation in form 2P (with a photo) is an analogue of a passport, but it is time to replace it.
Therefore, when contacting a pawnshop, do not shake the pieces of paper that they give you when accepting documents to replace your passport. They are not proof of your identity. Get yourself a temporary ID right away and save a lot of time and nerves.
Attention! Danger!
It is no secret that there are so-called buyers who make a living by purchasing valuables, including stolen ones, without burdening clients with the need to draw up documents.
And people who do not want to sell their or other people’s gold to buyers for next to nothing turn to legal organizations to sell their property at a higher price. Not wanting to reveal their identity, they try in every possible way to avoid providing documents: they ask intrusive questions (for example, “Is a passport required in a pawnshop if I never return for my item?” or “Why a passport, I’m in a pawnshop, not in the bank, and brought you everything you need as collateral?”, etc.). They hide their faces, try to make fun of them and persistently persuade them to accept values. Employees should be vigilant towards such clients: it is better to report such cases to law enforcement agencies.
Thus, to obtain a quick loan secured by valuables and antiques, pay off obligations or redeem at a pawnshop, you need a passport or a document legally permitted as identification of the client.
Answers to frequently asked questions
Why go to a pawn shop at all?
Clients turn to us for a loan, mainly because it is quick, compared to applying for a loan from a bank, which prefers to issue an amount greater than the required amount. CGL provides loans secured by goods of equal value, such as gold jewelry, household appliances, electronics, tools, computer equipment, or a car. Our clients are given 2 months to repay the loan and/or pay the corresponding interest for using the loan. If interest is paid on time, the loan can be renewed at any time.
How much money can I get?
The client can get as much as he needs. Our professional appraisers will determine the maximum loan amount based on the market value of your collateral—its appraised value, its current condition, and the ability to sell it if you default on the collateral. The loan amount is based on the similar value of the product on the market.
Do I need to bring documents with me?
Necessarily. According to current legislation, a person who contacts a pawnshop must identify himself with one of the following documents: • Passport of a citizen of the Russian Federation • Passport of a foreign citizen • Residence permit in the Russian Federation • Identification of a military man of the Russian Federation • Passport of a sailor • Military ID
Do I need to present a passport if I pay off the loan amount, interest on it and want to return the collateral located at the Central City Pawnshop?
Yes, the document is required both when issuing borrowed funds and when returning the collateral and paying interest. However, in exceptional cases, for example, when a passport is replaced due to age or all documents are stolen, it is possible to contact a pawnshop without a passport. You must have an identification card in Form 2P and confirmation from law enforcement agencies (in exceptional cases). They have no right to refuse service - such certificates are accepted even in state banks.
Can a pawn shop sell my collateral?
CGL does not have the right to dispose of the collateral during the entire duration of the loan term. All this time the collateral is guarded in a specially equipped storage facility. The collateral cannot be withdrawn and sold until the last day specified in the loan agreement and is withdrawn for further sale only if the borrower fails to repay the debt and/or interest on the loan by the end of the term.
Is it true that most borrowers lose their collateral?
Of course not. Interestingly, more than 99% of all loans are returned to the CGL. Working with regular customers is the basis of our business. Some clients pledge the same goods regularly. And therefore, we prefer that clients return loans to us and pay interest on the loan, and take back their property. When a client loses property, we lose a client.
How does this even work?
Loans from a pawn shop are based on collateral that you leave in exchange for money. This means that pawn shops provide cash loans based on collateral in the form of gold, jewelry, tools, electronics, etc. While pawn shops offer other services such as buying and selling items, loans to the public for value amount to most of the pawnshop business. The main reason that customers turn to pawn shops is that banks and other lenders simply do not want to provide relatively small loans that help citizens meet urgent financial needs, and also that most banks, in fact, do not encourage early repayment of loans . According to the All-Russian League of Pawnshops, the national average loan amount is up to 10,000 rubles, which indicates that now, more than ever, citizens need quick money solutions. Unlike other forms of lending, pawn loans do not affect your credit history.
Okay, so what are my next steps?
You must determine in advance the amount of money you want to borrow. Pawnshop clients take exactly as much as they need, no more. Bring something valuable to our office that you can keep as collateral, such as gold, jewelry, electronics, tools, etc. Our expert staff will evaluate your product quickly and efficiently. The value of your item is determined by the appraised value, as well as the current condition and our ability to sell the item in the event of loan default/non-payment. The amount we offer is based on the wholesale or secondary value, not the new price. Based on your needs and the value of your goods, we offer you the optimal loan amount. If you are satisfied with the amount and want to apply for a loan, you must present a government-issued ID. The legislation of the Russian Federation obliges us to store information about clients. You will receive a security slip stating the terms of your loan. The ticket will include: repayment period, a brief description of the item, loan amount, interest rate, etc. Our employees will definitely explain the details to you. We encourage our clients to ask as many questions as possible to ensure they fully understand all the details of the loan agreement. The validity period of the loan at TsGL is 2 months. This means that you have just that much time to return to our pawnshop to pay interest, extend the loan term for another 60 calendar days and, if you wish, buy out the pledged property. If the loan is due to repay but you cannot pay the full amount, you can renew the loan agreement by simply paying the interest. The new loan is also issued for a period of two months. The principal amount remains the same. You also have the right to make a partial redemption of your products by paying off interest and paying part of the principal amount of the loan. Thus, you will reduce the amount of interest charged. When you are ready to collect your bail, simply come to our office with your bail slip, return the principal and pay off the interest. We will return your property to you at this time. If you can't pay back your loan, don't worry. Failing to repay your loan can never affect your credit score. After the two months specified in the loan agreement have passed, we may sell your collateral to reimburse our expenses.
Okay, I'm on my way to you. What else do I need to know to make sure everything goes quickly and with maximum benefit?
First, decide whether you want to sell your product or pawn it? In most cases, pawn shop employees can offer you a larger sum for your item if you want to sell it. If you are not ready to part with your collateral, then a quick secured loan is what you need. Think in advance what is more profitable for you - sell or mortgage. Determine how much money you need. Take the time to learn more about the product you want to pawn. Find out its retail value, its wholesale and passive value. Find out if your collateral is rare or common. Markings and serial numbers can show when it was made and by whom. Clean up your collateral and make sure it is in good condition. Scratched, damaged or broken items may not be easy to pawn, and the condition of the pawn will affect the appraised value and the amount the pawn shop will offer you. Do not forget that the estimated value of collateral depends on several factors: passive value, current condition, the likelihood of resell your collateral, the cost of storing and protecting the items, etc. CGL employees want to have strong and long-term relationships with clients and therefore, whenever possible, offer the maximum loan amount for your collateral.
Purchase
Don't know what to do with old, unloved, unworn, out-of-fashion or broken gold jewelry that's just lying around in your jewelry box? Now is the best time to sell them to us. Our staff are professionally trained to inspect and weigh your gold and will offer you the highest possible amount. The purity of your gold is determined by its purity. Pure gold is .999 (24 karats), and gold jewelry often ranges from 375 to 750 (10-18 karats). The purer the gold, the higher the purity, the more valuable it is and the more money you can get for it. The weight of your gold item is calculated in grams. To determine the weight of the purchased product, we use high-precision, verified scales. The entire weighing process takes place in front of your eyes, so you can be sure that you will receive the highest possible amount. However, before you come to us, be sure to do some research. Try to first determine the price you can get for your product. Keep in mind that for certain types of goods, purchase prices are significantly lower than retail prices. Jewelry or, for example, an expensive watch are usually bought at higher prices than, say, a laptop computer or a fur coat. Also, be sure to consider the condition of your item. Damage, scratches or missing parts can significantly reduce the value of your item. Once you have determined your price, bring your item to us. We have specialists who can quickly determine the value of your goods and who will help you get exactly the money you need.
Cost of delivery to a pawnshop
The precious metal is valued based on current tariffs.
Each sample has its own price. The cost of 585 samples varies from 2,550 rubles per gram to 2,700 rubles. The assessment depends on the condition of the item and the credit history in our pawnshop. 1 gram of 750 sample costs 3,300 rubles. Please note that only the net weight of the precious metal is assessed. The weight of the stones does not count! White gold jewelry is often encrusted with diamonds. In this case, the assessment of stones depends on their size: scattered or crumbled stones are not assessed. For larger diamonds you may be paid, but this amount is never large.
White gold concept
White gold is a metal alloy that contains both pure gold and metals that color it white.
For these purposes, different compositions are used. Typically, nickel, platinum, palladium or silver are used in the alloy. Each option has its pros and cons. This depends on the characteristics of the metal being added. The ligature with palladium has a glossy shine. But this metal is quite soft, and the products are not so wear-resistant. Nickel has not been used lately because it is an allergen. It has been completely banned in the European Union since 2000. Jewelers found a way out of the situation. The above disadvantages are compensated for by the rhodium plating of the jewelry. It gives strength and shine to jewelry. The rhodium layer also prevents nickel from coming into contact with the skin.
When silver is added to the alloy, the products acquire a more matte hue. Platinum gives both a noble light shade and high strength. This option is preferable, especially for jewelry with complex designs.
How to choose a pawnshop
1) Any pawnshop, if it does not disguise itself as a pawnshop (the name of the company and on the sign must clearly say “pawnshop”, there should be no emoticons or similar substitutes for letters), operates in accordance with the law of the Russian Federation “On pawnshops” . On the website of the League of Pawnshops you can find an interpretation that will clarify unclear points and terms.
2) Find out the price of gold on the stock exchange.
Call several large pawn shops or find out the value of gold on the website. Pay attention to the site. The information content of the site speaks volumes, as does the lack of information. Be sure to learn about product evaluation methods. If they value it as scrap gold, it’s just money. If it’s like in our pawnshop, like a product, then it’s a completely different price.
3) Select several suitable pawn shops.
Find out their opening hours (by law, a pawnshop can issue loans until 20:00), location, and parking availability. Think in advance with whom and how you will transport the product, and how you will transport the money back. If we are talking about an impressive amount, it would not be a bad idea to visit the pawnshop in advance. Find out the assessment conditions, the availability of measuring instruments, and whether they have been tested. Is the pawnshop ready to give out the required amount? Ask to see permits. If everything is in order and you are satisfied with the pawnshop, you can start agreeing on the time of the transaction.
4) Don't forget to take your passport with you.
Without a passport, no serious pawnshop will ever accept your product. If you are not sure of the authenticity of the product, immediately say so and ask an expert to check. In our pawnshop you can do this for free. It is useless to hand over samovar gold; at best, it will simply not be accepted.
5) When the product has been assessed and the cost has been announced, if you are satisfied with the assessment amount, they will offer to conclude an agreement. Be sure to read Chapter 7, Article 2 of the Law “On Pawnshops” in advance. It contains comprehensive information about what the contract should contain. And the contract is the main document that confirms your rights and the validity of your claims if something happens.
If you have lost a pawn ticket or it has been stolen from you, then a serious pawnshop will always restore it to you; a copy of this ticket is kept in the pawnshop just for such a case. An unscrupulous pawnshop can take advantage of the situation and take possession of your property. In our pawnshop, pawn tickets are stored both in a safe and in an electronic database, and a copy is issued upon the client’s first request.
6) At the end of the contract, you can either return the entire loan amount along with interest, or pay only interest and extend the contract.
If you have not redeemed the item at the end of the contract and have not paid off the interest, then by law the grace period begins (30 days), when you can repay the debt and interest and buy the property from the pawnshop. Some pawn shops charge double interest during the grace period. In our pawnshop there are no “double interest” and payments are made only for the actual time of using the loan. This is an honest and mutually beneficial relationship with the client. If a pawnshop sold your item before the grace period expired, feel free to write a complaint against it to the Assay Office of the territorial division of the Ministry of Internal Affairs. The law will be on your side.
7) And finally, the most important thing. Knowledge of the subject will allow you to gain confidence and peace of mind.
It’s impossible to find out everything in a short period of time, but the main thing is possible. It’s better to read on the Internet for an hour than to spend a month sorting through the courts. And of course, choose a serious jewelry pawnshop. For such a company, reputational losses are much more expensive than small gains.
What to take to a pawnshop
Different pawn shops accept different items. Most often, this can be equipment, electronics, jewelry, precious stones. Often, people bring metals and, in particular, gold or silver. It is this item of collateral that will never become outdated or deteriorate. You can get money for absolutely any jewelry, household items, dishes, watches. Broken jewelry or, simply, scrap, can also improve a shaky financial situation. The amount issued in hand will depend on the price set in this particular pawnshop. The main thing is that only professionals evaluate what you bring. There have been cases when a person brought rare jewelry with expensive precious stones, and an employee of the establishment considered them to be glass, estimating solely their weight. To prevent this from happening, you need to contact only trusted pawnshops that have been operating in the country for a long time. You can look up their list on the Internet, ask your acquaintances and friends. Also, be sure to take into account the reviews left by people who contacted the company. Those who were satisfied in any case will not lie. However, so do people with claims.
Why you need to choose a pawnshop and not a bank or microfinance organization
A loan from a pawnshop is much more convenient than regular lending. The fact is that you can get money many times faster than in any financial institution. If your documents are in order, no one will refuse you. Credit history is also unimportant here, unless you once left a bad taste in a particular establishment. Also, you will not be asked for any certificates; money will be given out on the day you apply.
By choosing trusted pawn shops, you can hope for a high price for gold or any other jewelry. And, if you wish, you can take out an urgent loan for a considerable amount. Naturally, we will first have to discuss the interest that will accumulate over a week, month, or year. But, the question is removed if you are not going to buy the jewelry.
By the way, any citizen of the country or abroad who has reached the age of 18 can contact a pawnshop. At the same time, almost everything can be donated. At least, there has always been, is and will be a demand for any gold jewelry. The main thing is that the item has a beautiful and acceptable presentation. This will increase the size of the possible payment. The presence of inlays and precious stones also affect the price.
You can read about auditing in the article: What is auditing and what do auditors do?
