
Pawnshop
Loan Collateral
A pawnshop holds your items as security, called collateral, until you repay the loan.

She used her vintage watch as collateral at the pawnshop.
Repayment Period
You have a set time to repay the loan to the pawnshop or they can sell your item.

John had two months to repay the pawnshop before they sold his laptop.
Interest Rates
Pawnshops often have high interest rates on loans they give for pawned items.

The interest rate at the pawnshop was 20% per month.
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