SINGLE PAYMENT LOaN TERMS

All pawn shop loans require a single payment before the loan term expires. Each payment made will complete the loan, whether the payment covers all debt + interest and concludes the loan, or the payment covers all interest to-date and requires an extension. If the loan is not paid in full, a new loan must be issued under the same terms, adjusted for any repayment of the principal.

PAYMENT OPTIONS
1. Full Payment – If all debt + interest is paid within the 5-month term, the loan is concluded, and valuables can be redeemed.

2. Partial Repayment – If some debt is repaid + interest within the 5-month term, the loan amount is adjusted and the loan is extended for another 5-month term.

3. If only the interest is paid within the 5-month loan term, a new 5-month loan is issued. 

SUMMARY
The calculator only needs to calculate interest charges for a single payment within a single 5-month loan term. It will calculate the interest from the time you plan to receive a loan until the time you expect to make a payment, which must be within 5 months’ time.

If you plan to extend your loan for another 5 months, by making an interest only payment or partial repayment with interest, you will need to run calculations for each term and manually calculate the interest charges to get an extended interest forecast.

SUMMARIZED LOAN TERMS

• A pawn shop loan term is 5 months.
• Monthly payments are not required, but at least one (1) payment must be made within the loan term to avoid default.
• The minimum amount due at the time of payment is the sum of all monthly interest charges that have accrued since the loan was issued.
• If the loan is repaid in full + interest and within the loan term, the total debt is paid, and the contract is complete.
• If some of the loan is repaid + interest and within the loan term, a new loan will be issued. The remaining debt will be the new loan amount and a new 5-month loan term begins on the date of payment.
• If only the interest is paid, within the loan term, a new loan will be issued. The original debt will be the new loan amount and a new 5-month loan term begins on the date of payment.

Learn More About Loan Terms

RENEWALS

Borrowers are not required to repay their debt within a 5-month loan term. The loan term can be renewed by:

• Making a payment that covers only the interest charges
• Making a payment that covers the interest charges and some of the loan amount.

Remember, at least one (1) payment MUST be made during the loan term, to avoid defaulting on your loan.

When a payment, which does not repay the entire debt, is made within a loan term, the loan term is renewed. Any remaining debt is your new loan amount, and you get a new 5-month loan term starting on the date of your payment.

If you plan to make multiple payments before the loan is repaid in full, you will receive multiple loan term renewals. You will start and finish a loan term more than once. To calculate interest charges over multiple periods, you will need to use the calculator once for each period, then sum the totals.

For more accurate estimates, don’t forget to consider each payment date as the new start for any subsequent loan terms.

Need to dive deeper into the loan terms. View in-depth detail on a new page.